Tuscan Capital has introduced a new range of products aimed at investors looking to grow their exposure to the Houses in Multiple Occupation (HMO) market.
The bridging lender said it had been encouraged to make the move following increased demand from property professionals seeking long-term revenue streams and above average yields difficult to achieve through conventional buy-to-let investment strategies.
Features of the new HMO offering include the following:
- Funding available up to £3,000,000
- Funding of purchase price up to 75% LTV
- Funding of refurbishment costs up to 100%
- Funding up to a total of 65% LTGDV
- Transparent drawdown process
Colin Sanders (pictured), Tuscan Capital’s CEO, said: “More property professionals are now turning to HMOs as their long-term strategy choice for real estate investment.
“Higher-than-average yields can be achieved if landlords are prepared to invest in providing high-quality, self-contained accommodation with an element of shared services and which meet the licensing regulations of the local authority.
“With the average age for first-time buyers increasing, and the levels of guaranteed income and deposit required to buy a property on the rise, the demand for affordable rental accommodation in cities and commutable locations has never been greater.”