Help 2 Buy - Lodging - HMO Advice.

aj_4u

Hello,

Guys I need some landlords wisdom

I am 25 with a yearly salary of 41,320

Looking to buy my first house, looking at a 3 bedroom house on the help to buy scheme. If I don't get accepted i'll look at a 10% mortgage. It would be nice if people can give opinions on the scheme, etc.

My question is, in order to help me pay the mortgage I was hoping to rent rooms with lodging licenses. Is this against general mortgage agreements? I will be living in the property, I got the idea from a landlord I had when I was working away he lived in the house and let rooms in the rest of the house. I am single, easy going, I don't mind some money to help rent the house.

Also are there any rules for 3 storery houses, for example, if you are doing a buy to let and buying a 3 stroey house there are lots of regulations and requirements such as fire doors, etc. My parents have always stuck to two storey for that reason.

Any advice is greatly appreciated.


Thanks again.
Arjun

ethank

I've no mortgage broker, but I know that many providers do not class income from lodgers as an acceptable form of income, so you need to be able to afford the mortgage on your salary (and other acceptable income)

Yorkie1

Here's one guide to HMO. Chances are, from what you've said, you would have an HMO if you took on 2 lodgers.

http://hmo.org.uk/index-hmo.html

You also need to check that the house isn't in an area subject to an Article 4 Direction (I think it's called). This means that the local council has passed a by-law requiring all HMOs to get planning permission for change of use from standard residential.

Don't forget you'd need a landlord's gas safety certificate and to find a buildings / contents insurance which accepted that number of lodgers.

aj_4u

I can afford to pay the mortgage myself, just thought this could help.

Also for anyone who has these kind of queries

check hxxpx://gov.uk/government/uploads/system/uploads/attachment_data/file/11893/151564.pdf


This is the exact doc you need to check, if you want to be a live in landlord.

Thanks Arjun

aj_4u

HSBC - 40% lodging allowed, i.e. from the whole property. 3 bedroom house means you could let 2 rooms out providing your had a front room and a dining room.


Thanks Arjun

dimbo61

You may well find with a 3 storey property and two lodgers you cannot put them on the top floor and may need a full mains wired smoke alarm system with control panel (£1500) Fire doors which a new 3 storey property would have. ETC
check with the council re HMO and Article 4 in the area you are looking at.

red40

Yorkie1 wrote: »

Chances are, from what you've said, you would have an HMO if you took on 2 lodgers.

The Article 4 bit is correct, but under the provisions of the Housing Act 2004 a resident landlord is permitted to have upto 2 lodgers residing at the property and not be classed as a HMO and therefore exempt from the Management Regulations. The Housing Health and Safety Rating System (HHSRS) would still be applicable though.

HTH

Yorkie1

You learn summat every day, ta red40.