The Client
The client had seen an attractive investment opportunity – a large multistorey office block in a city centre location, in the process of being converted into multiple flats. Our client was a portfolio landlord with a spread of existing properties, from traditional buy-to-lets to serviced accommodation, held both in personal names and through a limited company.
The Scenario
The key challenge was finding a lender comfortable with this type of property as security. Not only was it a converted building, but one that could also be considered investor-led. This narrowed the pool of lenders we could approach – some are cautious about converted buildings, and others steer clear of investor-led developments altogether, since a limited pool of potential buyers on eventual resale is a real concern for them.
The Solution
Through our access to lenders’ Business Development Managers and our position as a whole-of-market buy-to-let broker working with over 300 lenders, we were not only able to find a lender willing to consider this type of property, but one most likely to accept it subject to valuation.
Our client was made aware the application would proceed subject to valuation, and was happy to accept that risk given the strength of the opportunity.
Summary
Many investors looking to purchase properties of this kind unfortunately see their mortgage applications declined at the valuation stage. Using a lender genuinely comfortable with this type of development is the key factor. As a whole-of-market broker, we can approach specialist lenders directly and find the right fit for each client.
Frequently Asked Questions
Can I get a mortgage on a converted office building?
Yes, though the lender pool is narrower than for standard residential property.
Some lenders are cautious about converted buildings, particularly where the conversion is relatively recent or the development is considered investor-led.
What does 'investor-led' mean when applying for a mortgage?
It generally means the development was built or converted primarily to sell to investors rather than owner-occupiers.
Some lenders are more cautious about this, since it can affect how easily the property could be resold in future.
What does 'subject to valuation' mean for a mortgage application?
It means the lender has agreed to consider the application in principle, but final approval depends on the property’s valuation coming back as expected.
On non-standard properties, this is often the best outcome available before a full valuation is carried out.
Why do some lenders decline converted or non-standard properties?
Lenders are cautious about anything that could be harder to value accurately or resell later.
Non-standard construction, unclear planning histories and investor-led developments all narrow the pool of lenders willing to consider a case, regardless of how strong the numbers look.
Commercial Finance Network is a whole-of-market FCA authorised commercial finance broker working with property investors, developers, and businesses across the UK and internationally. We work across the full specialist buy-to-let panel and will tell you which lenders will engage with your deal, what LTV and rate to expect, and how to structure the application before anything is submitted.
Commercial Finance Network is directly authorised and regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on a loan secured against it. Buy-to-let and business-purpose lending secured against investment property is not regulated by the Financial Conduct Authority.
Call us on +44 1494 622 111 or email info@cfnuk.com to speak to a specialist directly.
Related Pages
- Buy-to-Let Mortgages – whole-of-market advice for portfolio landlords across the UK
- Why Some HMOs Can’t Be Financed – how non-standard construction and unclear planning histories narrow lender appetite
- Serviced Accommodation Finance – flexible mortgage solutions for short-term let and Airbnb-style property
- Buy-to-Let Mortgage Calculator – estimate borrowing and monthly costs before you apply