A vendor loan allows you, the property owner, to sell your property today at full market value, whilst deferring part of the payment. In return, you receive fixed, guaranteed income from investor-backed coupons until the balance is repaid, without the stress of owning the property. Here’s why this works for HMO owners.
How is this possible? Through a vendor loan partnership with CS Property Group.
Full Market Value
We wouldn't want to take a discount on our portfolio, so why should you? No haggling, just a fair valuation.
Certainty of Sale
We see it all the time - protracted sales taking years to get the value you want, offers falling through, estate agency delays. Avoid all of this.
Ongoing Income & No Headache
Up to a 10% annual coupon on the deferred balance, paid monthly. This could offer an attractive return, with none of the headaches.
Security
You will continue to have a legal charge over the property, for your peace of mind and certainty that whatever happens, you have protection.
Avoid Costly Upgrades
Avoid all the costly upgrades and management changes that will come with proposed new legislation in the Private Rented Sector.
Fast, No Fee Transaction
No estate agency delays, back and forth, tyre kickers, or viewing disruption. A seamless, fee-free handover for you and any existing tenants.
Get in touch for a free evaluation
We’re experienced operators, not backseat investors.
Our whole business is residential property management, and one which we’ve built during the last 10 years to manage c.2500 units for our clients, as well as our own portfolio.
We were one of England’s first HMO specialists, founding CS Lets in 2015. Our experience means that selling your property to us is as smooth as it gets, with a seamless management transition and speedy completion.
We will take care of all handover tasks, property upgrades and legislative requirements, such as EPC legislation and the Renters Rights Bill due to be introduced in the near future.
Let’s talk numbers – worked example
Asking price / market value to sell HMO: £500,000
Structure: 30% Vendor Loan (£150,000), 5-year term, 10% annual coupon
Overview:
- Traditional sale (portfolio buyer): A cash sale at 20% discount would leave you with £400,000.
- Open market sale: You may achieve £500,000 but with significant delays and no ongoing benefits.
- Vendor loan structure: You receive 70% of the purchase price on completion and loan CSPG the remaining 30%, with up to a 10% annual coupon on the loaned amount paid monthly.
Overall, you receive the full £500,000 market value, plus an additional £75,000 in fixed income over 5 years). We can explore tax-efficient structures for the sale, tailored to you.
Net Benefit: that’s equivalent to a 50% uplift on the deferred balance.
Next steps…
- Discovery call – a brief chat to discuss selling your HMO, or portfolio, and your goals.
- Proposal & Due Diligence – we confirm numbers and legal structure, tailored to you.
- Legal Process – our solicitors draft the vendor-loan agreements.
- Completion – 70% cash to you upfront, monthly income begins.
Ready to unlock full value from your HMO and keep earning? Call Lee, email [email protected] or fill in the form below.
Sell Your HMO Fast with a CSPG Vendor Loan Partnership
Call Lee or email directly and confidentially, using the form.