HMO Regulations

Regulations for Houses in Multiple Occupation (HMO)

A House in Multiple Occupation (HMO) has many rules and requirements that is must meet to be in a lettable condition – as set out by central government and your local council. These conditions can also affect your ability to obtain a HMO Mortgage on the property. Mandatory Licensing Mandatory HMO Licensing is being extended to any property renting to …

SubLet

Can I Sublet my Buy-to-Let Property? (Rent-to-Rent)

Property Investors often manage properties themselves or instruct an agent on their behalf. Though not all, there is another way. Other property investors will rent to another Landlord perhaps a local business, local authority, housing associations or other Landlord. A common phrase being rent-to-rent or SubLet. Renting in this way will typically require a “special” mortgage given that your standard …

DSS Tenants

Can I rent to people receiving Housing Benefit? (DSS/LHA/UC)

Not well known in the property investment community that as Landlords you can be prohibited in the mortgage contract to rent to certain people. On a survey of 53 mortgage lenders, we found that 43 have a “No DSS Tenants” policy. DSS an old abbreviation of the former “Department of Social Services”. Today this criteria would be better known as …

Buy to Let Minimum Income

Minimum Income for Buy-to-Let-Mortgage

A common concern for property investors contemplating a new buy-to-let investment is if they earn enough income. Now you will know the answer! Unfortunately, due to industry terminology, the answer is often misunderstood. The advice received from our friends in the pub, that you don’t need any income for a Buy-to-Let Mortgages. Is incorrect. When we say “No Minimum Income” …

Personal Guarantee

Buy-to-Let Company Mortgage without Personal Guarantee?

In recent times the buy-to-let mortgage market has seen a significant switch in how landlords buy properties. An increased amount of corporisation. Landlords are now, in more significant numbers, forming Limited Company’s to buy, hold and rent out properties. The companies are typically new, perhaps a day old. Have no income or assets! So how can the company get a …

New EPC Regulations

EPC Rules for Landlords (Lenders Criteria)

New Energy Efficiency Regulations establish a minimum level of energy efficiency for privately rented property in England and Wales. From April 2018 landlords must ensure that their properties reach at least an Energy Performance Certificate (EPC) rating of E. You will not be allowed to enter new tenancy agreements to rent a property with EPC ratings of F or G …

Three More Things about HMOS

Its about time we talked about HMOs we have some changes coming soon with (1) effecting multi-lets & (2) effecting all . I included (3) because many landlords dont know about this issue – many are certainly surprised when a mortgage is declined because of a kitchen. 1. More HMOs to require a licence! Currently, you did not require an …

New Portfolio BTL Requirements

Own 4+ Properties? New Portfolio Buy-To-Let Requirements Revealed!

Landlords with 4 (or more) buy-to-let properties from September 2017 are required to meet new mortgage lending requirements. These are in addition to Interest coverage ratio (ICR), Interest rate affordability and Income affordability test that came in January 2017. (More: Buy-to-Let Affordability Changes ) The Prudential Regulatory Authority (PRA) suggests that data shows “that arrears rates increase as portfolio size …

HMO Mortgage Product Launch

Only 10 Year Fixed Mortgage for House of Multiple Occupation (HMO)

Buy to Let Mortgage Brokers are wakeing up to an announcement from Precise Mortgages of a new product launch. Precise Mortgages offers a Five Year Fixed 75% LTV HMO Mortgage at just 3.99%. Today ( 13/09/2016 ) the lender popular with property investors has launched: 10 Year Fixed Mortgage for HMO’s at just 3.99% Precise offering two products 10 year …

HMO Valuations - Commercial or Buildings

Valuation of House in Multiple Occupation ( HMO )

The valuation of House of Multiple Occupation (HMOs) can be undertaken under two methods: Buildings Valuation (common) Commercial Valuation (rare) Commercial HMO Valuations are rare in that most lenders do not offer this route, they take the view that Buildings Value gives them greater security based on vacant possession re-sale value. Buildings HMO Valuations¬† are more common. Its the valuation …