hmo finance uk
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.
Landlords have two options for managing their HMO property: a single, joint and severally liable agreement or an individual contract per tenant.
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.
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.
HMOs are often furnished completely. This is an additional expense to consider. Traditional buy to lease properties are typically unfurnished.
A traditional buy to rent property typically can accommodate one person or the entire family. A household would make a single rental payment each week or month. The household would also have to pay utility bills. These are commonly referred as'singlelets'.
HMOs: What are the benefits? - Less "impactful voids": A gap between tenants at a single occupancy house can be as little as one month. This allows you to make repairs, redecorate, and view the property, without any rent coming in. The rent received from other tenants can be reduced with an HMO. Your costs could be more tax-deductible than a standard BTL.