The rules around lending to BTL and licensed or unlicensed HMO’s can be tricky but we are here to try and make the process as simple as possible for you.
Whether this is your first Buy to Let (BTL) or you are an experienced landlord with a portfolio of BTL or Houses in Multiple Occupation (HMO) we have a range of refurbishment, refinance and mortgage solutions to meet your needs.
It is important you know the rules around lending on BTL and HMO properties. If you have multiple tenants and more than one tenancy agreement you should seek advice from your mortgage provider to make sure you are within the mortgage agreement.
Standard Buy to Let
With the housing market moving again so has the lending criteria and now you can lend a whopping 85% Loan to Value (LTV) on your BTL.
First BTL mortgage? we have that covered with lenders willing to lend to first time investors.
Worried about the age criteria? Well don’t we have solutions for lenders between 25 and 85 at the end date of the mortgage.
Your property must be habitable i.e. have a kitchen, bathroom, central heating and running water to be mortgageable.
Does the property need refurbishing? That’s OK, why not try …
Light Refurbishment BTL
With this finance you can purchase the property using the standard BTL format and have a replacement mortgage ready for when you finish the refurbishment works.
The valuer will value the property at the outset in its current condition and purchase price and also provide the likely future value bearing in mind the refurbishment works you are going to carry out.
A new mortgage based on refurbishment completed will be offered in principle at the outset so you can release more of your finance tied up in the property without the 6 month rule applying!
Just remember, for light refurbishment it must be habitable therefore needs to have a bathroom, kitchen, running water and heating (even though you may be replacing them in the refurbishment) and works need to be completed within 12 weeks.
To work through an example with you on the property and refurbishment costs you have in mind call us now on 0333 444 1212.
Heavy Refurbishment BTL
The same principles applies as with the light refurbishment.
Heavy refurbishment however usually means additional works such as rewiring, replastering, some structural work ie loft conversion or walls to be moved. Therefore the house is inhabitable.
The time to complete works can be up to 12 months.
A little more detail to work through but well worth a call to see if your project is suitable for this type of mortgage. Call us now on 0333 444 1212 and see what finance we can secure for your refurbishment works.
Houses in Multiple Occupation
HMO’s are slightly different than BTL in that most BTL lenders will only lend to multi-lets through their standard BTL products, whereas licensed HMO’s or HMO’s with more than 5 tenants need HMO specific finance. There are still lots of lenders who offer finance for HMO’s and it is important you have the right mortgage in place.
Licenced or unlicenced? It doesn’t matter there is funding available for both but it is really important you know what is required by the council in the local area of the property. For example check out if Article 4 restrictions are in place. Are there any local regulations covering HMO’s you need to be aware of?
Finance is available for a raft of different situations but you will need to have had at least one BTL mortgage for a minimum of 12 months to be able to apply; most landlords and investors can easily meet this criteria.
HMO refurbishment mortgages
As with the BTL refurbishment mortgages, these are available to help cover the costs to refurbish or convert a property into an HMO and to cover the health and safety and fire regulations and licensing needed in your area.
