Buying a House in Multiple Occupation (HMO) is seen by many property investors as a fantastic opportunity to generate higher rental income, maximum returns can be generated by adapting a property for multiple tenants via Assured Shorthold Tenancy Agreements.
Anyone considering a HMO mortgage needs to be aware that this is an area that is highly regulated and subject to very specific lending criteria. Investing in property on the basis of HMO requires professional mortgage advice to avoid any of the common pitfalls.
If a property is classed as an HMO a license may be required from the local council on the basis of fire safety, suitability of amenities and proper management. This license will need to be provided to the mortgage lender. Generally speaking you will need a licence where there are 5 or more occupants over 3 or more storeys sharing a kitchen and/or a bathroom.
With access to both buy to let and commercial HMO mortgage lenders, we can provide you with advice on a range of products currently available in the market.
Taxation planning is a key aspect of any investment project. It is often advantageous to conduct HMO property investment by establishing a limited company rather than acting as a private individual, Falbros recommends exploring this situation with a Tax advice specialist.
John Goodall, CEO and founder of Landbay, believes demand for rental properties will increase as the market emerges from the seasonal summer slowdown. Mr Goodall was reflecting on news that the average rent of a new letting in the UK grew
News - 06 July 2017
Foundation Home Loans marketing director Jeff Knight has spoken of his delight following the enhancement of its buy-to-let range with a new HMO (Houses in Multiple Occupation) product. The new HMO product, available to both individuals and
News - 08 August 2017
We have a range of calculators to help make things simpler for you, from calculating payments to understanding how much your stamp duty may be. These calculators are for guidance purposes only.
Our mortgage brokers offer mortgage advice on a wide variety of mortgages, more detailed information about the different mortgages can be found below.