HMOs often come furnished. This is another cost to be aware of. Traditional buy to rent properties are usually unfurnished.
An HMO mortgage is required if you rent to more than three tenants coming from different households. Because your property is not eligible for a regular mortgage to buy to let, they are only for single-household tenants. You could be sued by lenders if you took a regular mortgage on an HMO home.
HMO licences can be obtained from local councils. They are valid for five year if approved. HMO licences can be obtained for each individual property and not just for the landlord. If an HMO requires a licence, for example, a landlord may need to have a licence for each of his three properties.
The landlord can manage an HMO property through a single agreement or a separate contract for each tenant.
A mortgage lender is never a good idea. It's not wise to approach them in the hopes of securing a loan. A specialist can ensure that the right lender is approached, and that you are eligible for the best rates. For more information, or to make an enquiry, simply contact our experts with your questions.
Number crunching is essential to make an HMO financially viable. Our HMO mortgage advisors can help maximize your rental income by analyzing your proposal. Secure a great deal to make your HMO profitable. Most lenders who offer preferential rates often work with mortgage brokers.
HMOs are complicated and many buy-to-let lenders will not lend to novice landlords. Lenders have different criteria, but typically, one to two year of experience as a landlord suffices. While lenders may accept new landlords, it is not common for them to require that the property be managed by an agent. Our buy to ten team can help determine if you will qualify for an HMO-mortgage.