HMOs - properties let to 3+ tenants from 2+ households sharing facilities - can generate strong yields but need specialist lending. Lenders assess the per-room rental, require licensing evidence where applicable, and have specific valuation approaches. We match your HMO to the right lender.
Licensing
Mandatory HMO licensing applies to properties with 5+ occupants from 2+ households. Many councils also have additional licensing schemes. Lenders need the licence or confirmation it's not required. We coordinate the evidence.
- Mandatory licensing for 5+ occupants
- Additional licensing schemes checked
- Licence evidence coordinated for the lender
Valuation & rental assessment
HMO lenders often assess on per-room rental, which can support a higher loan than a single-let valuation. We present signed tenancies or local per-room comparables to maximise the figure, and confirm the lender's valuation approach.
- Per-room rental assessment where favourable
- Signed tenancies or comparable rents
- Lender's HMO valuation approach confirmed
