hmo mortgage advisor
Students: They can have their rent guaranteed by their parents, and often have a limit to their study time.
It is common for shared areas to be 'left' as no one wants another's mess. Sometimes landlords have to clean their properties or hire cleaners.
Before you make any investment, speak to the HMO licensing officer at your local authority. Before you invest, make sure to check the local definitions and licensing requirements. These may include minimum kitchen size, living space, kitchen facilities and number of toilets.
Students: They can have their rent guaranteed by their parents, and often have a limit to their study time.
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.
What is commonly called an HMO but is in fact a large HMO. This is a property that has five or more tenants and where they share a toilet, bathroom, or kitchen. The building may have a certain number of stories. To operate Large HMOs, Landlords will need to have a HMO license. This licence is valid for five year and can be referred to as Licsenced HMOs.
HMO buy-to-let4 bedroom semidetached house with two reception rooms1 conversion room to a bedroomRent to five single-working professionalsMonthly rental Income per Tenant = PS400Monthly rentals income =PS2000Annual rental income =PS24,000. The above example shows why HMO properties are becoming more popular with landlords. The difference between gross rental income and net rental income can be staggering.
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.