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If it wasn’t for Lak we would never have got the property. .
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When looking for a mortgage broker we initially went to another broker who confused and restricted our options. We then met Lak who simplified the process and gave us a more competitive deal in a timely manner to relieve pressure from agents and get the house of our dreams.
When you step into the world of Buy to Let property investment, you quickly become aware of the many responsibilities that come with being a landlord.
From understanding your obligations to your tenants and their rights, to deposit protection schemes and dispute resolution, there is a raft of legislation that you need to be aware of, and adhere to.
This is all necessary of course, in order to protect yourself, your tenants and your property.
If you intend to let your property to multiple occupants who aren’t related (for example shared student accommodation) then you also need to be aware of rules relating to Houses in Multiple Occupation (HMOs).
Unfortunately, determining what is or isn’t an HMO isn’t always as straightforward as we might like it to be.
Requirements may vary slightly from one local council area to the next.
Different mortgage lenders, similarly, may apply different criteria to determine whether or not the property you want to buy falls within their definition of an HMO.
To complicate matters further, some – but not all – HMOs need to be formally licensed by the local authority.
The concept of licensing for Houses in Multiple Occupancy is dictated by the Housing Act 2004 in England and Wales.
The provisions introduced in this Act were intended to provide safeguards and protections for tenants living in an HMO property, as it was recognised that tenants in shared properties have tended to be at greater risk.
Either as a result of the actions of other tenants, or because of inadequate maintenance or safety precautions by the landlords of such properties
By requiring landlords to obtain a licence for certain categories of HMO, local authorities are better able to ensure that certain key requirements – such as fire safety regulations – are met.
In its widest definition, a House in Multiple Occupancy is usually considered to be any property in which a toilet, cooking or washing area is shared by at least three people from two or more separate households.
In this context, a “household” may be a single person, a couple or even a larger family group who share amenities with other households in a single property.
While each household will often have a separate tenancy agreement, there may be exceptions.
For example, four students sharing a house might have a single tenancy agreement, but would not under law be considered a single household.
Typical examples of HMOs include shared student or worker accommodation, hostels and shared houses or properties with multiple lodgers.
Although all properties which match the above definition may be considered to be HMOs, the legislation recognises that historically it has tended to be larger properties with multiple tenants that present the greatest risks.
The criteria for HMOs that have to be licensed by local authority are therefore more specific...
Mandatory licensing for HMOs applies to properties with three or more storeys, with at least five occupants making up two or more households.
While these mandatory licensing requirements are set down by central government, local authorities may also stipulate criteria for “additional licensing” schemes which widen the scope of HMOs that have to be licensed.
These can vary between local authorities, and it’s therefore important to check with the authority covering the area in which you wish to operate an HMO to determine whether a license will be required.
Failure to obtain a licence where one is needed can be costly, with a potentially unlimited fine.
If you’re looking for a Buy to Let mortgage for an HMO, it’s a good idea to take expert advice.
While there are some common factors, each lender has its own criteria to determine whether a property is an HMO.
There may also be restrictions on whether they will lend on a particular property – for example a maximum number of rooms or storeys.
Lending limits will also vary, and it’s not unusual for lenders only to accept HMO mortgage applications from landlords with an established track record.
Lak Tamana & Associates can help you navigate the complexities of the HMO mortgage market and find the most suitable deal to suit your unique circumstances.
So contact them today to discuss your HMO requirements and get a fast, no-obligation quote.
Call now on 07973 748473 for an HMO mortgage quote. There’s absolutely no-obligation.
Or simply fill out our request a call back form. and Lak or a colleague will call you back at a convenient time slot.
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