hmo finance job description

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Although every case is different, HMO mortgage applications generally take the same amount of time to process by lenders as other buy-to-let mortgages. We would estimate that a purchase mortgage offer takes three to four weeks and completion takes four to six weeks.

What are the expected returns from an HMO

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Why Should You Invest in HMOs HMOs, or Houses in Multiple Occupation, are generally more profitable than standard rental properties. What are they? And how easy is it for you to finance them. A House of Multiple Occupation, also known as HMO, is defined as a property with three or more occupants who share the bathroom or kitchen facilities. For properties to be able to operate legally, they must obtain a HMO licence from their local authority. These homes are often referred to as a "house-share" and are very popular among young professionals and students. The rent is usually cheaper than a studio or small apartment. Landlords and property investors also have the benefit of an HMO. Rents from multiple bedsits generally yield higher rental yields that a stand-alone home.

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This lends an unfortunate meaning to "unlicensed" HMOs, which suggests they are somehow illegal and fly-by night. So local authorities, lenders, or owners may refer to smaller HMOs as multilets, "HMOS NOT REQUIRED TO BE LICENSED", or "non�licensable HPMOs".

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Why should you invest in HMOs HMOs (Houses In Multiple Occupation), are typically more profitable that standard rental properties. But what exactly are HMOs and how easy it is to finance them. A House of Multiple Occupation or HMO is defined as a property where more than one person lives in the same bathroom or kitchen. A specific HMO licence is required by the local authority for properties to operate in compliance with regulations. These homes, often called house-shares, offer students and young professionals a more affordable option than small flats or studios. The HMO provides landlords and property owners with a better rental yield than letting a single unit.

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There are also some void periods. HMOs can have longer void times than traditional buy-to let. HMOs could also mean higher maintenance costs for landlords than traditional buy and let models. This could be because HMOs share common areas such as living rooms, kitchens, and bathrooms.

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Once you have some experience in renting property, you might be able to transition to HMO letting. It is possible to either convert an existing property or purchase a new one. However, you will need a specialist HMO loan. If you already own a property with an ordinary buy-to - let mortgage, your lender will want to talk to you about remortgaging it to an HMO.