Buy-to-let mortgage / affordability

ACG

tommy-house wrote: »

As a side note, if a say 5 bedroom property was just 2 storeys high, am i right in thinking that a large HMO license is not needed?
From local council:

It is mandatory (required by law) that there is a licence for properties that:

are three or more storeys high, and
have five or more people in more than one household, and
share amenities such as bathrooms, toilets and cooking facilities
These properties are known as 'Houses in Multiple Occupation' or 'HMO'.

No. Point 2 says "5 or more", so you would be limited to 4 bedrooms over 2 floors in this instance.

But that just cuts out the HMO bit of the issue. I cant see you being able to get a mortgage for anything more than arond £200,000. And as soon as you say 3 people will be living in the property with you I think it will be dead in the water.

tommy-house

ACG wrote: »

No. Point 2 says "5 or more", so you would be limited to 4 bedrooms over 2 floors in this instance.

But that just cuts out the HMO bit of the issue. I cant see you being able to get a mortgage for anything more than arond £200,000. And as soon as you say 3 people will be living in the property with you I think it will be dead in the water.

That's not how I am reading it. It says "and" at the end of the sentence, implying that all 3 conditions have to be met for it to be classed as a Large HMO.
For example, if there are 10 bedrooms over 6 storeys, it wouldn't class as a large HMO if each of the bedrooms have their own bathroom and kitchen.

ACG

Good point. You look to be right, probably worth speaking to the council though just to beonthe safe side.

tommy-house

ACG wrote: »

Good point. You look to be right, probably worth speaking to the council though just to beonthe safe side.

Yes I will do.
It seems strange to not classify 2 storey buildings as Large HMOs when the rules are in place to prevent overcrowding.

ACG

If I jumped out of a 2 storey building because it was on fire I would be fairly confident I would be "walking" away from it with a few broken bones at most...maybe some messy pants. If I jumped out of the third storey I would definitely have messy pants and most likely a lot of broken bones.

HSE lesson 101 on there for you free of charge.

(If any HSE advisors are reading this its just a joke...and I know that H&S is no joke).