Loan Case Study 2:

Location: Bristol

Loan Amount: £282,000

LTV: 76%

LTGDV: 81%

Rate: 1% per month

Term: 12 months

Borrower Type: First-Time Borrower

Exit Strategy: Buy-to-Let Refinance / HMO Conversion

The Opportunity

We were approached by a first-time borrower looking to undertake a full refurbishment of a residential property in a prime area of Bristol. The aim was to add a fourth bedroom and significantly increase the property’s value, while simultaneously applying for planning permission to convert the home into a licensed HMO (House in Multiple Occupation).

Our Solution

Severn Capital provided a £282,000 bridging loan, structured at 76% LTV and 81% LTGDV, fixed at 1% per month over a 12-month term. The loan funded the full refurbishment works, which are being carried out to a high standard to ensure compliance with current building and safety regulations.

Exit Strategy

The primary exit is a Buy-to-Let refinance upon completion of the works. Should planning permission for the HMO conversion be granted, the borrower will have the option to refinance on more favourable terms and increase long-term rental yields. This flexible structure gives the borrower multiple exit options depending on planning outcomes.

Location Advantage

The property is ideally situated just five minutes from both the MOD Abbey Wood campus and Southmead Hospital—two major employers in the area—making it an attractive prospect for long-term rental demand and a solid investment for the borrower’s growing portfolio.