Fleet Mortgages has published a helpful guide to HMOs for landlords to address the growing demand for these investments.
The lender also says that the guide reinforces its commitment to educating and supporting buy to let customers with enhanced product offerings.
The publication, ‘A Guide to HMOs: Licencing, Planning & Article 4’ will also help BTL mortgage consultants with novice and seasoned HMO landlords.
The offering has straightforward advice on HMO classifications, licensing procedures, Article 4 Direction effects and the role of planning consents.
HMOs are attractive investments
The lender’s chief commercial officer, Steve Cox, said: “We’re very pleased to be able to share this new guide with advisers and their landlord clients.
“HMOs remain an attractive investment opportunity, often providing higher yields and greater income security than standard buy-to-let properties.
“However, they come with a more complex regulatory landscape, particularly around licencing and planning.”
He added: “This guide aims to demystify some of those requirements and provide clarity on how Article 4 areas work, what different licence types involve and what sort of properties can be considered.
“It’s a really useful tool for those advisers supporting clients who are either new to HMOs or are looking to diversify and expand their portfolios into this space.”
HMO guide available now
The guide is available now and it also covers:
- The definitions of small and large HMOs
- Mandatory, additional and selective licensing requirements
- Change of use rules between C3, C4 and Sui Generis planning categories
- How Article 4 Directions impact permitted development rights
- Examples of different licensing/planning scenario.
Landlord will also learn about Fleet’s own HMO lending criteria and how it can support them.
Contact one of our highly experienced mortgage advisors today on 0121 500 6316 to discuss your mortgage needs.
