HMO Valuations. Lender methods may differ in this area. Some lenders use the traditional surveyor inspection in combination with comparing it to other properties in the region. If there arenŐt any HMOs, the valuation will reflect the propertyŐs value as if it were a single house. However, this method doesnŐt account for HMOs that have multiple rental incomes. Therefore, it limits your borrowing options.
HMO finance rates The exact rate of interest you pay will depend on your lender and their willingness and ability to consider your personal circumstances. This includes your experience, the number bedrooms and the location.
HMOs have higher operating costs, and often require more work and time. HMOs require that each room be secured and have safety and health guidelines that are much more thorough than regular buy to lets. HMOs will have higher setup costs than regular buy-to-let.
Young buyers are still unable to afford a home, so the demand for affordable rented accommodation is high. You can check the local listings sites (Gumtree and Zoopla) to see how strong the demand is from prospective tenants.
A traditional property to buy and let would normally accommodate one person or a whole family. Renters would pay a single rent payment, either weekly or monthly. The household would also be responsible for paying the utility bills. These are sometimes referred to as "singlelets".
The location of traditional rental properties isn't a problem. Our nationwide network of letting agents has rented properties in every possible location. They have been rented in every location, from rural to urban.
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.