hmo licence mortgage
A House in Multiple Occupation (HMO), is a property rented to more than one tenant. They may share facilities, such as a bathroom and kitchen. HMOs allow landlords to rent out a property to more than one household.
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 landlords often pay the utility bills of the property unless it has been converted into flats with separate title deeds from the land registry.
A House in Multiple Occupation (HMO), is a property rented to more than one tenant. They may share facilities, such as a bathroom and kitchen. HMOs allow landlords to rent out a property to more than one household.
Only a handful of UK specialist lenders are willing to lend large HMO properties and are familiar with the lucrative yields associated with multiple tenants. They define HMOs differently and will lend against different properties. That is why it is important to have a broker help you to create your application and match the right broker. CMB, an experienced broker, can package your request to meet the lender with the best terms. This greatly speeds up the application process.
Individual tenants love HMOs because they are affordable and fully furnished with all bills. This is especially true for international students, contractors and employees on work visas. HMOs are attractive because they allow you to'move straight in' at a very low cost.
HMOs may not generate three times as much rental income as a buy-to-let standard. You should also remember that landlords usually pay utility bills. However, even though the utility bill is approximately PS2k-3k annually, there is still a significant rental profit.
HMOs can be restricted to certain areas. HMOs can be targeted at specific tenants such students and single professionals. HMOs are often located in central areas or near major bus routes and amenities. It would be pointless to have an HMO located in a rural area in the middle-of-nowhere.