hmo refurbishment mortgage
HMO properties generate higher yields but are more difficult to setup. HMO licences might be required depending on what the HMO is.
HMO mortgage lenders have additional requirements for the property. Some mortgage lenders have specific requirements about the property. For example, they may require that only one kitchen be available to tenants or that tenants share common seating. Others limit the number and height of bedrooms and storeys. Find a lender that will allow you to renovate your property before you lease it. A mortgage broker is able to assist you in navigating all the restrictions and conditions necessary to find a lender willing to lend.
HMO mortgages are required for landlords who rent out to more than 3 tenants from different households. Your property will not be eligible for a regular buy-to-let mortgage as they are designed only for single-household renters. A regular mortgage would be required on HMO properties. This could lead to lenders taking legal action.
HMO properties generate higher yields but are more difficult to setup. HMO licences might be required depending on what the HMO is.
Finding the right HMO loan for you can be complicated. Lender criteria vary and each one will have different requirements. Our expert buy to let team is available to assist you in finding the right HMO 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.
A House In Multiple Occupation can offer more income than traditional buy to rent. Landlords have the opportunity to maximise rental incomes due to high rental demand in the UK. The right mortgage is key to maximising the rental income.
Before you make an investment, talk to your local HMO licensing office. Make sure you are familiar with your local licensing requirements and definitions. They may include minimum living and kitchen space sizes, kitchen facilities, toilet numbers, showers or baths, fire-pit equipment, etc.