HOUSE OF MULTIPLE OCCUPATION

The Background

Our client approached us to refinance four House of Multiple Occupation (HMO) properties located in the city centre. These properties varied in size, ranging from a five-bedroom to a sixteen-bedroom setup. The landlord’s goal was to maximise borrowing capacity to facilitate the acquisition of additional investment properties.

The Challenge

When dealing with HMO properties, understanding how different lenders value them becomes crucial. In this specific case, our client’s primary objective was to achieve the highest possible valuation. Therefore, we needed to provide an investment valuation based on the property’s income-generating potential rather than it’s ‘bricks and mortar’ value.

The Solution

All these properties fell under an Article 4 Directive, which mandated planning permission for any new HMOs in the area. On this basis we were able to arrange a competitive mortgage from a lender who we were confident would deliver the investment valuations required.