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.
Can you get a business loan for a HMO? - Financing a Commercial HMO It this can limit the amount a landlord can borrow, because HMOs have a higher value than non-HMOs.
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.
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.
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.
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.
Buy to Let mortgages are typically cheaper in terms fees and rates, and there are many lenders who offer them. Because they are more flexible, they can be easier to obtain. However, HMOs can sometimes make more than the mortgage cost.