Live-in landlords on resi-mortgages vs HMO licensing and mortgages.

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    Live-in landlords on resi-mortgages vs HMO licensing and mortgages.

    Evening all, tried searching for similar posts but no joy. So sorry if this is wordy:

    Had a chat with a live-in landlord, the property in question is a flat: one shared bathroom and kitchen, no livingroom. The live-in landlord and 2 lodgers share the property. One lodger wants to move in a friend, who will pay extra rent - apparently it's a huge room - so that will be 3 lodgers in total.

    I've understood, when it comes to HMOs: 3 unrelated TENANTS in one property qualifies for the HMO licence and mortgage. However, when it comes to LODGINGS: 2 unrelated LODGERS [excluded occupiers] and a LIVE-IN LANDLORD are exempt from HMO licensing, but add a THIRD lodger and the landlord's primary residential address seems to qualify for a HMO!

    QUESTION(s) - while stating the obvious:
    To have a HMO licence, you need a HMO mortgage yes? Yet a single- storey flat doesnt qualify as a 3-storey building. Mortgage wise it can qualify as a multi-let or BTL, maybe a mini HMO, but a landlord cannot reside in any of those right? So how can a landlord, on a resi-mortgage living in a single-storey flat suddenly become a HMO? Surely this landlord would just inform the council and the council would whack the council-tax up? Or have HMO licenses wiped that out too?

    I checked on Spareroom:
    "The Housing Act [2004] defined a House in Multiple Occupation as a house with more than 3 unrelated people sharing, forming two or more households. Of course it doesn't need to be a house, it could be a flat or a barn or a converted church; what matters is how many people live there, and what relation they are to each other." This doesnt make sense - the license means transferring to a HMO mortgage, and for that it would have to be a 3-storey flat!

    Any clarifications welcomed; I suggested they call the council and find out! But it left me with brain-ache...

    Don't know the answer to that specific question but just to add to it, I think there may be tax issues too. My understanding is that with that number of lodgers, Hmrc may tax it as a lodging house.


      True, thats another point. Thank you.


        It's not about licensing.
        The increased number of people males it an HMO and all the statutory regulations apply.
        Just like that.

        The council may require licensing, it's a local policy, not a national one.

        It may require panning consent, as planning policies can control where HMOs are allowed.

        If the property has a mortgage it will depend on the mortgage terms and conditions (which may already preclude lodgers).
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


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