How a Refurb GDV Loan Funded a High-Yield HMO Conversion in Essex
Written by Thomas Scruby
In today’s dynamic UK property market, rigid traditional lending criteria often stall the most lucrative projects before they even begin. For brokers, the ability to source a specialist lending partner who looks past a property’s current condition to its future profitability is a massive competitive advantage, setting clients for a genuinely successful outcome.
Our Refurb GDV loan is built precisely for this, offering financing based on the ultimate Gross Development Value rather than just the purchase price. By providing up to 75% Day 1 funding and covering 100% of the refurbishment costs, this product delivers the high leverage today’s ambitious investors need to optimise their capital throughout the project’s cycle.
Read more below on how we helped an investor turn their vision into a high-yield reality.
Building income, building homes
Ambitious Refurb and Return in Essex
A broker approached us on behalf of their client, a property investor looking for an end-to-end financing solution for a property project in Essex.
The Property
The property was purchased for £455,000 as a standard detached bungalow, but the borrower had an ambitious vision. They sought to completely overhaul the internal configuration and use permitted development rights to construct a single-storey rear extension, turning the property into a high-yielding, 6-bedroom (all en-suite) HMO with a projected GDV of £750,000.
The Refurb Costs
The budget for these extensive works was £140,000, which LendInvest fully funded, covering 100% of the build costs, using our Refurb GDV product. In total, we provided a facility offering 70% LTGDV over a 12-month term.
Exit with LendInvest Buy-to-Let
The borrower completed the project on time and exited the bridge loan seamlessly by refinancing into LendInvest’s 80% LTV Buy-to-Let product.
This project is a great example of what we can offer: providing borrowers with the finance to take on capital-intensive conversions, with the full security of knowing our wide range of BTL products de-risks the exit.
The Incentives
As a bonus for transitioning smoothly from a bridge to a BTL with us, we were able to offer the borrower £500 towards their valuation and a further £500 towards legal fees.
Cut the Complex: Refurb GDV Lending with LendInvest
- Expert Support: Benefit from our in-house MRICS surveyors who provide valuable advice on construction and value maximisation.
- Flexible LTVs: Up to 75% day one, 100% of costs, LTGDV 70% and up to £5 million total facility
- Versatile Property Support: Ideal for extensions HMOs, flats, houses, commercial-to-residential conversions, Buy-to-Let properties and semi-commercial end uses.
- No Exit Fees
- High Loan-to-Cost: We offer a generous maximum LTC of 90%, covering a significant portion of your total project costs.
- Seamless transition onto our competitive Buy-to-Let products.
- Strong Appetite: Cost of works can be more than 100% of the Market Value
Ready to explore how a Refurb GDV line of financing can help your client achieve their property investment goals?
Contact one of our dedicated experts today or start your quote with our Refurb GDV Calculator.