looking for buy a previous HMO property for use as single dwelling

trinnie

Hi there,

ANY advice greatly appreciated. I am looking to buy a property that has lain empty for 2 years. It was previously used as an HMO property, and still has a valid HMO licence ( As I understand they can last for 5 years)

However, the property is completely empty now, with only one kitchen ( I know that is a BIG deal to a mortgage co.) and 2 bathrooms. I am very nervous about allowing the mortgage company to go and have a look at it, until I feel I have my boxes ticked. It is such a beautiful property with huge potential to be a family home, if I can get past the survey.

My question is.....will the mortgage be refused on the basis only that the property has a HMO licence still running, in which case I can arrange for it to be revoked..will that be enough or is previous HMO status enough to get the book thrown at you? very worried.... Trinnie

dimbo61

If the property passes the survey you should be OK
It was a house/home for a family at one time so why not be returned to its former glory.
Deposit, location, condition, Income all come into the equation.
Extension with or without planning permission, flat roofs?
Hope you have DEEP POCKETS

tynmar

The mortgage might take a bit more work but it isnt an automatic refusal. I had to go to appeal for mine but that was more based on work needing doing than it being an HMO as it was in a right state...

Conversion of a property into a different number of dwellings has a reduced VAT rate of 5% tax break.

Yes it does work for HMO to single as well. Saved me tens of thousands of pounds when reconverting my home from bedsits.

Make sure you hold onto that HMO licence document as will mean a lot of savings on most work you do but builders accountants won't agree unless you have that as evidence.

Professional services like architects or structural engineers aren't included in this, nor are white goods though.

amnblog

Lenders have a problem granting residential mortgages on HMO licensed (or adapted) properties.

[makes sense when you think about it]

Once again this is not a case to approach without a broker.