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Showing results for tags 'hmo mortgage'.
Found 6 results
HMO deal analysis
jitsy posted a topic in HMO AdviceHi everyone, I've got a few single lets where we've used the BRRR strategy and am now venturing out to my first HMO - however I'm struggling to assess whether it is a good deal! We've agreed a purchase on 3 bed terrace in the NW and we are looking to convert it to a 5 bed all ensuite. We know there is demand in the area we are looking at and are quiet confident that the rooms will be filled. The 'return on money left in' the deal once refinanced is suitable for what we are after and gives a reasonable cashflow. However, the biggest stumbling block for me is that the purchase price + fees + refurbishment cost is a fair amount greater than what the property will be valued at once the works are complete. What this effectively means, if we were to sell the property after the works we will lose money. The intention is not to sell. However, when we analyse our single lets one of our exit options is that we don't lose money if we had to sell the property after completion of works. This exit option wouldn't exist here due to the larger refurb cost associated with the HMO. I just wanted people's views on this - is this fairly common for those that have created their own HMOs? Thanks Jitsy
HMO newbie advice
sam_hawkins posted a topic in Introduce yourselfWhat advice would you give for someone looking to get into HMO's to begin with? Lucky enough to be at a young age (17) and would greatly appreciate any advice that can be given from anyone who has had or currently owns HMO's and what would they do differently if they were to start again/ what mistakes to avoid if possible. Thanks
Student HMO mortgage advice
Hannah Davies posted a topic in Mortgage AdviceHi there, I need some advice please. I’ve been rejected lending on a non licensed HMO student property on the basis they are all on separate AST’s. My broker initially checked and the mortgage company said it was ok for individual contracts but after the valuation they said they wouldn’t lend on that basis. Surely it’s not normal for students to all be on one contract? Can anyone shed some light as to why the mortgage company changed their mind? many thanks.
HMO Mortage separate AST’s
Hannah Davies posted a topic in General property discussionHi there, I need some advice please. I’ve been rejected lending on a non licensed HMO student property on the basis they are all on separate AST’s. My broker initially checked and the mortgage company said it was ok for individual contracts but after the valuation they said they wouldn’t lend on that basis. Surely it’s not normal for students to all be on one contract? Can anyone shed some light as to why the mortgage company changed their mind? many thanks.
HMO mortgage while you have standard BTL
romanovacoleman_gmail_com posted a topic in Mortgage AdviceGood afternoon, I was wondering if I can borrow your brains, as everyone seems rather friendly and helpful here. I love the property hub podcasts so I thought I would have a go and join the forum too! So the situation is like this: I have a big property on a standard BTL at 2 years fixed, interest only. It is let out on AST 6 months fixed, then periodic. I was listening to different podcasts and I have decided to turn it into an HMO. I am fully aware what it entails, and I will be applying for the permission now, as I am in Article 4. I can make it a 6 bed high end HMO, but I am confused as to what I actually can do once I have the necessary permissions? I have architect and planning officers ready, so assuming I get my HMO permissions within 2 months, that is assuming on 01/12/16. I would like to evict the tenants and start converting it to an HMO. By then I will be roughly 1 year into my BTL, so 1 year to go on the fixed term. The million dollar question is this: which tools I can use to start using it as an HMO? Do I just let it for 1.5 years and then finish HMO refurb by the time 2 years are running up and then I will have HMO with all the permissions ready to be let out and refinance it then? Can I do it before? The option not to tell anyone and just do it quietly is tempting, but won't sadly work. I am a house owner. Any comments will be of great help! Thanks guys.
Been overseas now have poor credit history
Tracy Dancer posted a topic in Mortgage AdviceCan anyone help? My husband and I returned to the UK last year after spending 12 years in Australia. We have funds in the bank but a limited credit history as we haven’t been in the Country. We do not own a home here, we rent. The best a broker could offer for starting our property portfolio was a loan at 4.3% for a HMO but the minimum loan amount was £100k with 65% LTV – we were not looking at spending anywhere near this amount; or Single let BTL at 75% LTV at 8.15%. I wasn’t overly impressed but are these figures the best I can expect? If someone else (family member) becomes mortgage host I guess we would not be seen as having HMO experience down the track as the mortgage holder would gain that?? Would it be worth buying in cash and then refinancing when we have a credit history here or is that just too long a process? Very interested in other people’s thoughts / comments.