no one seems to know if my property is a HMO!!!!!!!!

ds1980

In process of getting remortgage. Surveyor has turned around and said it is an hmo.

it has 3 floors, 5 beds. 2 bathrooms and a kitchen.

it has 1 tenancy agreement with 1 person on it.

the house is shared but there are no locks etc on doors and it is just like a big family home.

any advice?

[Deleted User]

Sorry, what is HMO?

Vampgirl

I'm no expert, but according to http://www.landlordzone.co.uk/HMOs1.htm the definition of and HMO is a "house which is occupied by persons who do not form a single household".

There appear to be several categories of HMO: best to have a read through and see which specific situation applies to your house.

clutton_2

Houses in Multiple Occupation are defined by both the size of the property and by the number of households living in it. (one unmarried person living alone is one household - one family with 20 kids is one household). Your local environmental health/housing office at the council will tell you how they are defining HMOs in their area - councils have interpreted the 2004 Act in multifarious ways !!

the problem with this property is that it is 3 storeys and HMOs which are 3 storeys are compulsorily licensable by the local authority. 3 storey buildings which are rented out have far more stringent fire regulations than 2 storeys - these regs are to stop folks dieing in fires - so, just off the to of my head, you will need fire doors throughout the whole house, emergency lighting, hard wired smoke alarms etc etc - it is not a cheap business.

If this is your family home and a lot of you live there and you plan on h ving just one person renting one room - you might be better off using the RentA Room Lodger scheme - but again check that with your local authority as to fire regs.

the surveyor is cautious because if you have one tenant, there is nothing stopping you from having more without informing the lender - and most BTL lenders will not lend on HMOs without the most stringent of investigations as to whether the legal requirements of the 2004 Act and others have been complied with.

pcwilkins

http://www.communities.gov.uk/index.asp?id=1164086 wrote:

Under the changes in the Housing Act 2004, if you let a property which is one of the following types it is a House in Multiple Occupation:

• An entire house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet. (For a definition of household see the relevant question under faqs.)

At the moment your property is not a HMO as you only have one tenant. But if you get two more, then it becomes a HMO as they would all share the kitchen. The size of your house is not relevant, though having three stories seems to suggest that it is treated as a HMO.

http://www.communities.gov.uk/pub/21/LandlordsDoyouneedapropertylicencePDF279Kb_id1164021.pdf wrote:

A household comprises any tenants who are members of the same family living together including couples (whether or not they are married), relatives and half-relatives or step-relatives, adopted and fostered children. A group of friends sharing a house will not be a single household.

Unless you let the whole house to one "household" (see defn. above) OR you have maximum two tenants, then it is a HMO and you will need a license.

Peter

clutton_2

i have been researching HMO business for the last 2 years, and the ONLY way to find out for sure is to phone your local council and ask them - as there are dozens of different interpretations all over the country by different HMO officers in different councils. 3 storey properties are specifically mentioned in the Act and have specific legal requirements as partially listed above.

""at the moment your property is not a HMO as you only have one tenant. But if you get two more then it becomes a HMO" - not true - it may not be a HMO - if the two additional residents are a married couple or members of the same family - in which case they will be one household, and two households do not make a HMO irrespective of the size of the house !!!

pcwilkins

clutton wrote: »

""at the moment your property is not a HMO as you only have one tenant. But if you get two more then it becomes a HMO" - not true - it may not be a HMO - if the two additional residents are a married couple or members of the same family - in which case they will be one household, and two households do not make a HMO irrespective of the size of the house !!!

Not so, my friend! If a house has three or more tenants who form two or more households, it is a HMO:

Under the changes in the Housing Act 2004, if you let a property which is one of the following types it is a House in Multiple Occupation:

• An entire house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet. (For a definition of household see the relevant question under faqs.)

So 2 households, 3 tenants means it's an HMO. Of course if the two new tenants are part of the same household as the original tenant, then it is still not a HMO.

Peter

ds1980

right so basically its "what is a household" now the way i see it they are 1 household although some are not related!! this is confusing! I wouldn't bother to be honest registering it its just proving difficult to get a mortgage!!!!!

grrrrrr the fun we have

pcwilkins

ds1980 wrote: »

right so basically its "what is a household"

http://www.communities.gov.uk/pub/21/LandlordsDoyouneedapropertylicencePDF279Kb_id1164021.pdf wrote:

A household comprises any tenants who are members of the same family living together including couples (whether or not they are married), relatives and half-relatives or step-relatives, adopted and fostered children. A group of friends sharing a house will not be a single household.

now the way i see it they are 1 household

Who is "they" --- I thought you only had one tenant? In any case the law is not defined by "the way you see it" --- sorry!

although some are not related!!

If they are not related, married, or living together as a couple then they are not a household. Simple.

this is confusing!

Not really. A household is basically a family --- a group of friends living together are not a family.

I wouldn't bother to be honest registering it its just proving difficult to get a mortgage!!!!!

http://www.communities.gov.uk/index.asp?id=1163883&cat=100027#acat wrote:

Failure to apply for a licence is a criminal offence and can result in a fine of up to £20,000.

grrrrrr the fun we have

You don't have to be a landlord, you know :-)

Peter

red40

pcwilkins is correct on this matter

ds1980 wrote: »

the house is shared but there are no locks etc on doors and it is just like a big family home.

Unless they are all related it is irrelevant that its 'like a family home'. If they are not related, each individual person becomes one household.

If it meets the requirements of the Housing Act 2004 ("the Act"), section 254, which defines, shared houses & bedsits, a flat in multiple occupation or mixed tenure of self contained and bedsit accommodation, and it satisfy's the 2006 Statutory Instrument 371, where it is 3 storey, occupied by 5 or more persons in two seperate households, it will be a HMO and one that requires licensing.

If it doesn't meet the requirements of SI371, say it only has four occupants, or the building consists of entirely self contained accommodation (sec257's & building control approval) it will be a HMO but wont require a licence.

If you have only two persons in two households (i.e unrelated) for the purposes of the HA2004 it will be exempt from being a HMO as per schedule 14 of the Act.

If you have one named tenant and another couple move in and neither are related to the original tenant, that would be 3 persons in 2 households.

A person is a person, it doesn't matter if they are a couple they would be 2 persons in 1 household.

Van, HMO stands for House in Multiple Occupation

ds1980

household - definition in the dictionary

A group of people who live together

Doesn't mention anything of being related. The people whom live under my roof are 1 household............simple. The all share kitchen and bathroom, the entire house.

To me this is a grey area because household is not defined?

Can people make up a new meanign for the term household???