HMO Mortgage On Grade II Listed Building In Carlisle

The Scenario

Our high-net-worth clients had identified a residential Grade II listed building in Carlisle city centre coming up at auction that was an ideal rental solution for doctors at the nearby hospital. The property needed refurbishment and some remodelling to make it suitable as an HMO.

Lenders are often reluctant to consider listed buildings: planning permission can be complicated and add expensive weeks to a project. Our clients had no previous experience converting a listed building to HMO, and were aware that this was an issue to be addressed.

The Solution

The clients had already instructed an experienced architect who was in discussions with the council’s listed building department, demonstrating their understanding of the process and a commitment to gathering the necessary information.

We took their application to a lender who was more focused on our clients’ established borrowing record and their strong outside incomes, and were able to secure an in-principle mortgage offer in just two days.

Four months after completion of the purchase, our client advised the lender that consent from the council had only just been received, which had set back the commencement of considerably.

The lender we had approached was able to take a pragmatic view of the situation, and the focus on the best outcome for both mortgager and client. They understood that the delay was completely beyond the client’s control and were willing to relax their standard condition that refurbishment works should be completed within six months.

In this case, matching with the right lender meant they looked at the situation on its own merits in order to get the best outcome for both mortgager and borrower.