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An HMO is a better option for landlords than letting to families. You will be able charge per room individually and thus charge more overall. To do this, you will need a specialist mortgage.
HMO licenses are issued by local councils and can be renewed for up to five years, if approved. HMO licenses are issued for each property, not each landlord. A landlord who has three HMO properties would need a license for each one.
HMO licenses are subject to different conditions by individual councils. However, you should be aware of these requirements before you apply. HMO licences can only be obtained if required by the local authority. A fine of up to PS20,000 is possible for renting an HMO licensable without a licence.
An HMO is a better option for landlords than letting to families. You will be able charge per room individually and thus charge more overall. To do this, you will need a specialist mortgage.
HMOs are often furnished completely. This is an additional expense to consider. Traditional buy to lease properties are typically unfurnished.
HMO buy and let4 bedroom semidetached property with 2 reception rooms1 room converted into a bedroomRent to 5 single-working professionalsMonthly tenant rental income = PS400Monthly landlord income = PS2000Annual rental earnings = PS24,000. You can see why HMO landlords are increasingly interested in HMO properties. It is possible to see a significant difference in gross rental revenue.
Only a handful of UK specialist lenders are willing to lend large HMO properties and are familiar with the lucrative yields associated with multiple tenants. They define HMOs differently and will lend against different properties. That is why it is important to have a broker help you to create your application and match the right broker. CMB, an experienced broker, can package your request to meet the lender with the best terms. This greatly speeds up the application process.
It can be hard to find the right HMO mortgage for you. Every lender has their own requirements. Our team of experienced property finance advisors will be happy to assist you with finding the best HMO mortgage for your needs.