Bexhill HMO Partnership

A standard 3 bedroom end of terrace transformed into a high performing 5 bedroom all ensuite HMO, structured, delivered and refinanced as a complete investment solution.

This project began as a traditional 3 bedroom Victorian end of terrace property sourced via Rightmove in Bexhill on Sea.

Scope: Conversion 3 Bed to 5 Bedroom All Ensuite HMO

Build Cost

£380,000 (including purchase)

Location

Bexhill on Sea

Completion

October 2024

Project Detail

Project Overview

Recognising the scale and proportions of the property, and the benefit of an existing loft conversion, the opportunity was clear. The building had the footprint required to meet modern HMO room standards without compromising layout quality.

Working alongside our experienced developer partner, Kangaroo Properties, this was our second project together. The brief was simple:

  • Create a high end, fully compliant, strong yielding HMO asset delivered on time, on budget and ready for refinance.

The Strategy

The property was purchased for £300,000 and funded via a refurbishment bridge facility.

The conversion was structured to be completed under permitted development, removing the need for a full planning application while working closely with Building Control to ensure full compliance.

From day one, the focus was on:

  • Maximising room size and layout efficiency
  • Ensuring full HMO compliance
  • Delivering a premium specification
  • Protecting the refinance valuation
  • Creating long term rental demand

Scope of Works

Bellco Construction managed the entire project from strip out to completion.

Works included:

  • Full internal strip out
  • Structural alterations
  • Steel installation
  • Reconfiguration of internal walls
  • Complete electrical rewire
  • Plumbing installation
  • Emergency lighting system
  • Fire alarm system
  • 5 fully fitted ensuite bathrooms
  • New kitchen installation
  • Installation of compliant fire doors
  • Decoration throughout
  • External landscaping works

Our team’s experience in HMO compliance ensured that fire safety, electrical certification, sound separation and Building Regulations requirements were addressed from the outset.

The project passed first inspection without issue.

Compliance and Risk Management

HMO conversions are heavily regulated.

Our in house experience meant we fully understood requirements relating to:

  • Fire safety
  • Means of escape
  • Emergency lighting
  • Electrical certification
  • Building Regulations compliance
  • Licensing standards

Because the scheme was properly designed and planned from the beginning, challenges were minimal and programme risk was reduced.

Financial Outcome

  • Purchase Price £300,000
  • Renovation Cost £80,000
  • Total Investment £380,000
  • Refinance Value £480,000
  • Rental Income £3,200 per month

The property was refinanced onto a hybrid HMO mortgage product, releasing capital and allowing the developer to recycle funds into the next project.

Since completion in October 2024:

  • 98% occupancy achieved over 2 years
  • Strong tenant demand
  • High quality finish resulted in applicants queueing to secure rooms

The premium specification directly contributed to long term tenant stability and reduced voids.

The Partnership Model

This project demonstrates our turnkey HMO delivery capability.

Working with Kangaroo Properties, we provided:

  • Deal assessment input
  • Full construction delivery
  • Compliance management
  • Programme control
  • Budget control
  • Refinance ready finish
  • Structured handover

Our build experience meant we had the team, systems and trade relationships to deliver on time and on budget.

This was our second successful project together, reinforcing the strength of the partnership model.

Why This Matters for Developers

We understand that investors require more than builders.

They require:

  • Compliance certainty
  • Cost control
  • Programme reliability
  • Refinance protection
  • Yield focused delivery
  • Capital recycling strategy

We can source deals, deliver compliant refurbishments and manage the entire process through to refinance and tenanting.

Turnkey HMO Delivery Partner

If you are an investor or developer looking to scale your HMO portfolio, Bellco Construction offers a fully integrated solution.

From sourcing and refurbishment through to compliance and refinance readiness, our experienced team manages the process end to end.

Speak to us to discuss your next HMO opportunity.

Get in Touch

Let’s Talk Development

We’d love to hear about your site or project. Whether you’re exploring a potential land sale, seeking a development partner, or simply curious about what’s possible, we’re here to help with honest advice and a free land appraisal.