| Property | Six-bedroom licensed HMO let to students |
|---|---|
| Location | Lenton, Nottingham |
| Client | Landlord with two standard buy-to-lets buying a first HMO |
| Product | HMO mortgages |
The challenge
The client had no HMO experience, and some lenders want a track record of managing HMOs. The price reflected the rental income, which a bricks-and-mortar valuation might not support.
What we did
We used lenders that accept landlords with buy-to-let experience on a first HMO. We asked for the HMO licence, room-by-room rents and the current tenancy agreements upfront. We chose a lender willing to value on an investment basis, reflecting the room rents. The client also agreed to use a local HMO letting agent.
The outcome
The purchase completed with existing tenants in place, so rent began from day one.
HMO mortgagesMortgages for houses in multiple occupation, from small shared houses to large licensed HMOs.
Learn moreImportant: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.