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HMO Dev Finance

HMO Development Finance Calculator

Calculate costs and potential profits for HMO development projects.

Modern HMO Property
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  1. Enter total development cost (land + build costs)
  2. Set loan-to-cost ratio (typically 60-80%)
  3. Input development finance interest rate
  4. Add expected development period
  5. Review total finance costs and potential profit margins
Note: Development involves significant risk. Seek professional advice.
How We Calculate Development Finance
Methodology & Data SourcesUpdated October 2025

Calculation Formulas

Development Loan Amount
GDV × LTV Percentage

Maximum loan based on gross development value

Interest Reserve
Loan Amount × Interest Rate × Development Period

Interest costs during development period

Data Sources

Development finance rates from specialist lenders (October 2025)
Construction cost data from RICS
HMO development finance criteria
Planning permission requirements

Key Assumptions

Interest Rate9.5%

Current average development finance rate

Maximum LTV65%

Typical development finance LTV limit

Development Period18 months

Typical HMO conversion timeline

Calculation Accuracy

Development finance calculations based on current market conditions. Actual rates depend on project complexity and location.