Looking for a mortgage for a HMO/Multi-let property?
Good news....we can help you find the best solution for you. We are experts in arranging mortgages for multi-let residential property that includes the following property types:
HMO's Houses in multiple occupation (both licensed and unlicensed)
Student let property
Self contained flats converted from a single freehold property
Bedsits (Rooms with kitchens but shared bathrooms)
Shared residential houses with multi-let tenancy agreements
No limit to the number of rooms or flats in the property. Each case underwritten on its merits
Where some brokers will only have 1 lender to offer you, we have 7 lenders that are offering HMO/multi-let Mortgages.
Access to several of these lenders is limited to a only a few brokers across the UK. Dealing with us allows you access to the widest choice of HMO/multi-let mortgages in the market.
Using our expert guidance and help, we can assist in arranging:
Mortgages up to 75% or more with additional security (we have arranged a 108% mortgage)
Mortgages for properties that are need of refurbishment prior to letting out
Mortgages to buy a property that is licensed as a house in multiple occupation (HMO)
Mortgage terms for up to 25 years
Interest only mortgages to reduce payments and improve cashflow
If you want to buy or refinance in a Ltd company this can also be done
We are constantly reviewing the market for HMO/multi-let mortgages and adding new HMO/multi-let lenders to ensure we obtain for you the financing terms you require.
For important information on the planning permission changes for HMO's from 6th April 2010, click here
What are Houses in multiple occupation (HMO)?
A HMO is in fact a single property that is let to 3 or more tenants and they for form 2 or more households. They also share a bathroom , kitchen and toilet.
Operating a HMO brings benefits in terms of higher yields and rental incomes but at the same time, there is a responsibility under legislation to ensure the property meets requirements for:
Fire Safety - Smoke alarms, fire doors and fire escapes
Amenities - If the kitchen and bathroom facilties are sufficent for the number of tenants
Proper management of the HMO
These applies for all HMO property if they are licenced or not. Once the number of tenants and households increases the HMO does need a licence from the local authority. The standard definition for when a licence for a HMO is required is shown below. However each local authority has the power to change this definition to suit their local requirement, so you need to check what the local definition is.
The standard definition for when a HMO requires a licence is:
When a property is let to 5 or more tenants and they form 2 or more households over 3 or more storeys and they share a bathroom, kitchen and toilet. This is applicable for England & Wales. In Scotland the requirements for a HMO licence are applicable under the standard HMO definition of 3 or more tenants.
We suggest you contact you local authority to find out if they are applied any changed to this standard definition. Local authorities web sites can be found on the www.direct.gov.uk web site.
Looking for tenants for your HMO/Multi-let property?
Spareroom.co.uk is a leading site for findng rooms to rent.
Really useful information on HMO licenses
You can also find further information by go to the Communities and Local Government web site
This web sites contains two useful guides which can be downloaded below
Licensing of Houses in Multiple Occupation in England
This is the more detailed guides and covers 40 pages and can be downloaded by clicking here
Landlords - Do you need a property licence
This is a shorter guide of 3 pages and provides a good summary and can be downloaded by clicking here
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