HMO mortgage available for properties with no HMO licence and no existing tenants.
HMO lenders normally require the property to have an HMO Licence and sufficient rental income from existing tenants before lending.
However, we have a unique mortgage to assist the purchase, or remortgage of a property requiring light refurbishment, prior to having an HMO licence and prior to being let. Our lender will lend up to 65% of the property purchase price, or property value and allow refurbishments to take place.
Examples of acceptable refurbishments are:
• New kitchen(s) and/or bathrooms and shower rooms
• Replacement windows and doors
• Re-wiring and re-plastering
• Fire alarms and smoke detectors
• Full interior and exterior redecoration
• New carpets, curtains, fixtures and fittings
Refurbishment work needs to be completed within 6 months. Applicants will then need to obtain an HMO licence (if none exists) and also arrange assured shorthold tenancies for all rooms, bedsits, studios, or flats, after which a further drawdown of funds up to 70% of the improved property value can be applied for.
This mortgage is ideal for:
• Existing landlords looking to improve their HMO properties
• Ability to raise capital against higher property value
• Higher rental income for better yield
• Purchase potentially un-lettable property
• Avoiding expensive bridging loans
Properties can be virtually any size and configuration. To discuss your requirements, call us now on 0117 223 2050 and speak to an adviser today.