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When assessing the property's value, lenders may take into account the rental income. This is especially beneficial if you have converted the property or are looking to withdraw equity.
HMOs can be a great option for tenants as they are often affordable, fully furnished and include bills. This is especially true if you are a student, contractor or an overseas employee who is on a work visa. HMOs appeal to people because they are easy and cost-effective.
HMOs that are valued based on rental income will not be valued by all lenders. Most lenders will consider the HMO to have the same value as a standard home. This can affect the amount of money you can borrow.
When assessing the property's value, lenders may take into account the rental income. This is especially beneficial if you have converted the property or are looking to withdraw equity.
For a great long-term return, it is important to get the best finance deal. Reach out to our HMO Mortgage finance specialists.
What is an HMO-mortgage? HMO mortgages can be used by landlords to rent their property to more tenants than one household. These specialist buy to let mortgages offer some key distinctions.
As the price of a home is rising, young buyers still have a strong desire for affordable rented accommodation. Look at local listing websites (Gumtree. Zoopla. Rightmove ) to determine the strength and demand from prospective tenants.
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.