After you have gained experience in the letting of property, you may be ready for HMOs. An HMO mortgage specialist will be required to help you buy or convert an HMO property. If you currently own a property in a normal buy-to-let mortgage you will need remortgaging to an HMO.
Students: They can have their rent guaranteed by their parents, and often have a limit to their study time.
Traditional buy to let would house a family of people or at most people who choose to live together. Disputes within the household can be resolved without needing to involve the landlord. The HMO type will typically be for students or working professionals.
You need to get the best financing deal possible in order to achieve long-term returns. Our HMO Mortgage Finance specialists are available to assist you.
HMOs may not be valued equally by lenders. Some will base their valuation on rental income, while others will base it on the HMO being a regular home. This can reduce the amount you are able to borrow, which defeats why an HMO mortgage is needed.
As nobody wants to take another person's mess, common areas tend to 'get left. Sometimes, landlords will need to clean the property or hire cleaners.
HMOs need a license from the local council where the property is located. This licence must be valid for five year. It is important to check with the local authority about the area's policy. Although five-person properties are the most common, smaller properties that have fewer tenants may also need a license. It varies depending on where you live so it is important to get all information before applying.