London HMO Strategy: Enfield Conversion, Cash-Out Refinance & Let-to-Buy Project – From £27k to £1M+ Portfolio

Enfield, London · HMO & portfolio scale-up

Our client purchased a residential property in London as a First Time Buyer in 2023. The property was originally 3 bed / 1 bath.

Initial investment

Purchase price: £450,000
Deposit (5%): £22,500
Initial mortgage: £427,500
First Time Buyer stamp duty (2023 rates): £1,250
Legal & professional fees: £3,000
Total initial personal capital: £26,750

Our client purchased a residential property in London as a First Time Buyer in 2023. The property was originally 3 bed / 1 bath.

Refurbishment of approximately £45,000 via a home improvement loan
Transformed into a 4 bed / 3 bath high-yield property

Remortgage (about 3 years later)

New valuation: £650,000
Approx. £200,000 uplift within about 3 years
Buy-to-let remortgage at 75% LTV

Refinance & cash release

New mortgage (75% LTV): £487,500
Less remaining residential mortgage repayment: Approx. £392,500
Cash released after refinance: Approx. £95,000

The refinance funds were used to purchase a second £500,000 main residence, covering the deposit, stamp duty and buying costs, and fully repaying the remaining refurbishment loan.

Results

Gross rental income: £3,900/month
Mortgage payment: £1,500/month
Management (10%): £390/month
Insurance, council tax & running costs: £330/month
Net cashflow: £1,680/month
Net annual income: £20,160/year
Starting personal capital: £26,750
Current total portfolio value: Approx. £1.15m
In simple terms: First London BTL/HMO now cash-flowing while portfolio scaled toward £1m+

Past performance is not a guide to future results. Figures reflect a specific client situation, market conditions at the time, and agreed fees. Your outcome will depend on your strategy, financing, and the property you buy.

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