Our client was purchasing a spacious 3-bed property to convert to a tenanted 5-bed-5-ensuite HMO, generating a gross income of £20,000pa. The conversion allowed an investment valuation rather than pure bricks and mortar. We approached a specialist lender who had appetite for this model. The client agreed the purchase of a 3-bed mid terraced house in Doncaster for £80,000. We arranged a Refurb-To-Let product whereby the loan covered 70% of the purchase price and 70% of the £45,000 works to convert the property. As part of arranging these terms, the term-out mortgage was also agreed upfront based on the initial surveyor’s commercial valuation of £170,000. The term out loan was £122,500 based on this valuation.