Is this property is HMO or not??

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  • btlmidlands
    started a topic Is this property is HMO or not??

    Is this property is HMO or not??

    Hi

    I have 2 properties.

    1st one has husband wife, their brother and their uncle total 4 people

    2nd one has 4 separate friends .

    On both properties they share full house and divide the rent between them.

    Do I need a HMO Licence, please help???

    Do I have to tell my mortgage lender??

    Please help???

    Thanks


  • KTC
    replied
    The letting doesn't have to be an HMO for you to require licensing. Check with your council for both.

    Mandatory licensing: "Large HMO"

    Additional licensing: All other HMO in designated area

    Selective licensing: All letting in designated area that's not exempted and not already requiring a HMO licence.

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  • loanarranger
    replied
    It s easy to determine what the response would be from your lenders simply by. Checking their criteria on their web sites. If theLender states it does not accept HMO’s then you have no option but to Remortgage to another lender who does, failure to do this is regarded as a breach of your existing mortgages; furthermore you will need to notify yourInsurance Co of the classification asdifferent terms and premiums would apply, remember that should a claimarise and it is established that you failed to notify the Ins Co , the policy claim would be redudiated and your name passed to other insurers for failing to declare material facts.
    Get it sorted for your own benefit and that of the people occupying both properties.

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  • btlmidlands
    replied
    Thanks for the advice.

    Leave a comment:


  • theartfullodger
    replied
    2nd is a HMO. Check with local council if you need licence (different councils, different rules). Even if no licence required, you need to comply with HMO regs (eg fire doors, management etc..)

    What does EACH mortgage paperwork state about who you can rent to? Different lenders, different products have different conditions. Sadly I can't your paperwork from here.

    HOW is the "division" of rent defined? You really need just to state total rent & have the right joint-and-several tenancy agreement so EACH named tenant is liable for ALL the rent: (So if not paid in full you can sue them all then collect from the easiest one - usually the one who has a PAYE job)

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