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HMO & Multi Lets

HMO property is where unrelated tenants have exclusive access to their rooms and share common living areas e.g. student shared housing or bedsits. The property can be let on a single Assured Shorthold Tenancy (AST) which includes all of the tenants, or each tenant can have their own AST agreement.

Standard buy to let lenders do not typically lend in this space, finance tends to be more expensive for houses of multiple occupation, and using a broker can save you a lot of time and money.   As generally there are better options than commercial offerings. Licenced HMOs are properties that are let to 5 or more professionals or students. Lenders may tend to require experience, but if you don't have any experience - it's not a deal breaker as whole of market brokers we can have you get great deals on great products.

Multi-lets and student-lets are similar to HMOs. They are often referred to as non-licensable HMOs because the local authority deems that they do not require an HMO licence. However, they may still require planning permission from the local authority so it’s important to get guidance.

A multi-unit freehold block is a single building with multiple, separate, independent residential units owned under a single freehold title, meaning no unit is subject to a lease.

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Buy to let lenders will allow up to 4 tenants on one AST (Assured Shorthold Tenancy) and a smaller number of lenders will allow seperate ASTs.  There are other things to consider too, for example - locks on internal doors, the number of kitchens, whether a communal room remains downstairs and whether or not downstairs rooms are let as a bedroom/s.

Despite what you may hear - you do not have to pay big for small multi tenanted properties.  Most buy to let options require expert guidance to get you cheaper finance.

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