Consent to let for HMO

Lawlaws

Hello, I’m looking for some advice please. Me and my partner each own a house and have done for a number of years prior to meeting. I currently have a friend lodging with me. Over the next few months I’ll be moving in with my o/h and we plan to get married. I’m tied in to my fixed deal with Nationwide for another 4 years so I’m considering CTL. The issue is that the house is too large and expensive for my friend to rent on his own so I was looking to see if I could rent two of the other rooms and keep my room in the house but I believe this would make it a HMO. The council have said this wouldn’t need a licence as its under 5 people but I’m not sure how Nationwide would view this. I don’t want to see my friend out of a home but I can’t live separate from someone I’ll be married to so I think my only option is to pray that Nationwide will consent on this basis. Any thoughts/advice would be appreciated. Many thanks

da_rule

Are you sure you want to be a HMO landlord (or a landlord at all)? Have you done any research into your obligations and potential liabilities.

However, if this is something you want to go ahead with then, as you say, you’ll need consent to let. Tell Nationwide your plan in case it makes a difference. You’ve identified what you need to do.

Lawlaws

Thanks for your comments. I don’t think I really want to be a HMO landlord but the situation is that me and my O/h don’t want to sell our properties. My ideal situation would be to have my friend live there as he has been and keep a room for when I visit family etc along with renting another room to just cover the bills. I’ve done lots of research on HMO’s and I’m not sure what other options I have. The other type of landlord would mean renting my house out in full.

saajan_12

Ask your lender or on the mortgages board about how likely the CTL for a HMO is. I'm not sure if lenders would distinguish but I would guess getting permission for a HMO will be the same or harder than for an AST covering the whole property.
* If you're only 4 years in, was it a 5 year deal? Its not been very long, so the lender may be sceptical whether making money through HMO was your plan all along.
* Full house ASTs are more common, making the rental market more predictable for the lender when they're deciding whether your expected rental income will cover the mortgage.
* If the lender has to repossess, evicting 4 tenants in separate contracts may be harder than doing the legal etc for 1 AST where everyone would likely leave together.

Have you considered other options?
1) Can your partner move into your place with friend as lodger and let / sell partner's property?
2) Sell your property, pay off partner's mortgage with the funds and port your mortgage to partner's property?
3) Lodger looks for another house share / bedsit / studio and let your property as a whole?

Lawlaws

Thank you for your response. At the time of taking out the 5 year fixed my partner was planning to live in my house but has been offered a job 5 mins from his house and my job has also moved over that way (houses are 50 miles apart). That’s the reason we are looking to live in his house. I’ll see if anyone else has had any experience of Nationwide with CTL and HMO’s many thanks.

Pixie5740

Lawlaws wrote: »

Thanks for your comments. I don’t think I really want to be a HMO landlord but the situation is that me and my O/h don’t want to sell our properties. My ideal situation would be to have my friend live there as he has been and keep a room for when I visit family etc along with renting another room to just cover the bills. I’ve done lots of research on HMO’s and I’m not sure what other options I have. The other type of landlord would mean renting my house out in full.

What other type of landlord?

G_M

Pixie5740 wrote: »

What other type of landlord?

I think the OP is suggesting taking steps to pretend he is still living there as a resident landlord.......

Lawlaws

By other landlord I was referring to an AST landlord instead of an HMO landlord

Pixie5740

Lawlaws wrote: »

By other landlord I was referring to an AST landlord instead of an HMO landlord

Eh? People who rent rooms in a HMO have Assured Shorthold Tenancies.

G_M

Lawlaws wrote: »

By other landlord I was referring to an AST landlord instead of an HMO landlord

If you are seriously considering letting a property, you need to understand tenancies.

An 'AST landlord' is one who offers his tenants a specific type of tenancy.

An 'HMO landlord' is one who offers his tenants a specific type of property.

The two are not mutually exclusive..

chanz4

I have been a hmo landlord for a few years, had enough and sold it. You get the house trashed, left messy, tenant arguments, subletting. Its harder to get the out, don't forget you will need to get firedoors, mains wired firm alarms, fire extigushers , higher insurance premiums...it aint worth it


Oh forgot to add big electric and gas bills