HMO's

Houses of Multiple Occupation can be an excellent cash generator for property. As you are receiving rent for individual rooms the total income from a property can be much higher.

The greatly increased cashflow can be much better than renting a property to single tenants as well as the lower risk of complete void periods. If one or even two tenants move from a six room let there is still at least two thirds of the rent coming in. It is also often easier to find new tenants quickly.

Although a number of landlords have decided to sell and come out of this type of business due to the new regulations they need not be onerous if you check with your local authority. Unfortunately it has been left to local authorities to interpret the new rules and therefore there can be a lack of consistency from one area to another. But by and large they will be informative and helpful if you are obviously interested in finding out how to comply. Most authorities have useful information on their website.

F1 can help and advise with finance for these types of properties. Generally if the property is let to several people on a single assured shorthold tenancy agreement the criteria are different than for a property with separate agreements or licences for each let room. We have access to lenders who are keen to lend on each type of property for borrowers in different situations.

F1 Finance can help you find the most cost effective buy to let mortgage to suit your investment property.

• Multi occupation properties (HMO's)
• Student lets
• Scottish BTL
• Buy to Let FAQ's
• Semi-commercial
• Ex local authority property

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOANS SECURED ON IT.