Here at Key we understand that finance for HMO’s is a specialist area and can be more difficult to obtain than your mainstream residential finance. Operators should consider the complexity of the regulations governing such properties, the need for additional planning consent and an HMO licence for the operator.
So what is an HMO?
An HMO is a house in multiple occupation- commonly described as a house in which a number of unrelated people live in their own self-contained rooms, but who share communal facilities. The property must be used as the tenants only or main residence, and it should be used solely to house tenants. The following properties likely to be an HMO are;
- An entire house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet.
- A house which has been converted entirely into bedsits or other non-self contained accommodation and which is let to 3 or more tenants who form two or more households and share a kitchen, bathroom or a toilet.
- A converted house which contains one or more flats which are not wholly self-contained (the flat does not contain a kitchen, bathroom, and toilet) and which is occupied by 3 or more tenants who form two or more households.
- A building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short term tenancies.
Here at Key we believe that there is an increased demand in HMO properties and we know who to approach to obtain the best LTV’S, rates and terms in the market. If yourself or your clients are thinking of investing into HMO’s then please call the Key team today and we will be more than happy to assist.