Renting affordable accommodation is still very popular as young buyers cannot afford to buy a house. For information on the strength of tenant demand, visit local listing sites such as Zoopla, Gumtree ...)and Rightmove.
HMOs are an excellent investment. - Higher rental income. As a rule, you could expect to earn roughly twice as much rent. One example is a four-bedroom house that's let to a family for PS800 per months, and four other tenants paying PS400 each. In order to attract tenants you may charge rent including bills, which will make your costs much higher.
HMOs are typically more expensive to run and usually require more effort and time. HMOs have different safety and security requirements than regular renters. For example, every room will require locks. HMO setup costs will therefore be more expensive than regular buys to let.
There are only a few UK lenders that are willing and able to lend money on large HMO properties. They also understand the risk associated with multiple tenants, which can lead to lower yields. They can set their own HMO definitions and lend against what they want. This is why you need to hire a broker to assist with your application. CMB, a seasoned broker, can package and tailor your application to the lender that will offer you the best terms. This dramatically speeds up application processing.
You want to make a long-term investment that will yield a high return. To do this, you need to negotiate the best terms possible on your finance. For more information, contact our HMO Mortgage financing specialists.
An HMO, as many call it, is actually a large HMO. It is a rental property where five or more tenants share the bathroom, kitchen, and toilet facilities. A building may also have a number of stories. A HMO licence is required by landlords to operate Large HMOs. It will be valid for five-years and is sometimes called Licsenced HMOs.
A traditional buy-to-let model would normally house a couple or three people. Disputes between the members of the household are often resolved without the need to contact the landlord. A landlord will often have an HMO type for student buy to rent or a HMO that is exclusively for working professionals.