Cheers Jamie, putting in an offer on my first "commercially valued" HMO today and wanted to understand the maths. As always, perfectly explained. Best of luck to Alex and his vaping venture also :)
Should we get a buy-to-let mortgage for a property that we are going to convert into an HMO in the near future? What type of mortgage do we require in this instance?
Hi Jamie, I'm loving all the content you share here on your channel and this video is no exception so thank you :-). On another note, I registered for your deal packaging webinar last night but didn't get chance to watch it all so will you be doing an encore or can you send me pm with a link to the replay? Thanks in advance
What about if you had a standard BTL Mortgage and you convert your artic to 2 rooms and you now have over 5 rooms on 3 floors (HMO); what do you do about your BTL Morgage? Are you gonna change it to a HMO Mortgage or Just leave it alone?
Hi Jamie, I have a property and the typical candidate for tenancy are young professional couples with no kids. For the first time, I’ve had a joint application from 3 unrelated people who work at the same place. Do you think going HMO on a one-off basis would be something to consider, taking into account that the applicants are professionals, not students, so the risk might be slightly lower? The idea is tempting, as I would have to pay a higher insurance premium and not sure what conditions the lender would place when I tell them - I’ve checked the mortgage conditions and it does not mention any limits around the type of letting, but only that the property must be let, the multiple occupancy is not even listed in the glossary of the conditions -, but it would give me the possibility for a higher margin too. But I’m usually all for “boring vanilla BTL” as you often call it, so I’m not sure if I’d want to go down that road, as it might be all a new set of problems, the tenants might not be as attached to the house as a family would, their relationship might break down more easily than a couple’s and they might start fighting with each other and not pay shares of rent, causing the whole project to collapse. I don’t know, have you ever had similar situations where a HMO possibility has presented itself when you weren’t looking for it and how have you dealt with it?
I think he’s talking about revaluation of the property similar to the concept of remortgaging. So 2% yield for 50k rent would mean 50k is 2% of the valuation vs 10% of it hence the 50k x 10 (now 20%) x 5 (100%) is 2.5m and the 10% yield is 50k x 10 (100%) is 500k. tenant with high risk means the chance of return on investment could be lower. I could be completely wrong though.
Cheers Jamie, putting in an offer on my first "commercially valued" HMO today and wanted to understand the maths. As always, perfectly explained. Best of luck to Alex and his vaping venture also :)
Great job Jamie. Would be interesting to watch your video about Landlord insurance. What cover and options must have and not e.t.c.
Good idea
Amazing!!! Thank you for this!!! 🙌🏾🙌🏾🙌🏾
No problem at all. Glad it added some value!
Great content once again. Keep posting!
Always!
Should we get a buy-to-let mortgage for a property that we are going to convert into an HMO in the near future? What type of mortgage do we require in this instance?
you can do that up to 4 tenants with some lenders (TMW for example). However, you'll need to talk to a commercial broker about HMO lending
Could you do a video about owning a Airbnb house please?
I do have a serviced accommodation video
@@JamieYork I just watched 😂 thank you
Excellent video!
Hi Jamie, I'm loving all the content you share here on your channel and this video is no exception so thank you :-). On another note, I registered for your deal packaging webinar last night but didn't get chance to watch it all so will you be doing an encore or can you send me pm with a link to the replay? Thanks in advance
What about if you had a standard BTL Mortgage and you convert your artic to 2 rooms and you now have over 5 rooms on 3 floors (HMO); what do you do about your BTL Morgage? Are you gonna change it to a HMO Mortgage or Just leave it alone?
I'd have a look into the lenders rules, you'll likely have to change it I'm afraid :/
Hi Jamie
Been following you for a while now
Always great content
Question
Can I get a hmo mortgage for a first time buyer ?
Can i buy a normal three bedroom house on a buy to let mortgage. Convert it into a HMO, and then apply for a HMO license
Hi Jamie, I have a property and the typical candidate for tenancy are young professional couples with no kids. For the first time, I’ve had a joint application from 3 unrelated people who work at the same place. Do you think going HMO on a one-off basis would be something to consider, taking into account that the applicants are professionals, not students, so the risk might be slightly lower? The idea is tempting, as I would have to pay a higher insurance premium and not sure what conditions the lender would place when I tell them - I’ve checked the mortgage conditions and it does not mention any limits around the type of letting, but only that the property must be let, the multiple occupancy is not even listed in the glossary of the conditions -, but it would give me the possibility for a higher margin too.
But I’m usually all for “boring vanilla BTL” as you often call it, so I’m not sure if I’d want to go down that road, as it might be all a new set of problems, the tenants might not be as attached to the house as a family would, their relationship might break down more easily than a couple’s and they might start fighting with each other and not pay shares of rent, causing the whole project to collapse. I don’t know, have you ever had similar situations where a HMO possibility has presented itself when you weren’t looking for it and how have you dealt with it?
hi jamie, great content.. how do you set up non article google my msap? cheers
What brand is your whiteboard? :P I want one!
Cheers mate! Its a samsung Flip!
Amazing! Thank you!
if 5 room (utility and living room combine) with shared kitchen with dining without hmo possible?
not too sure what you mean when you say alex is 10% yield and the bank is a 2% yield for the same property both paying 50k per annum
I think he’s talking about revaluation of the property similar to the concept of remortgaging. So 2% yield for 50k rent would mean 50k is 2% of the valuation vs 10% of it hence the 50k x 10 (now 20%) x 5 (100%) is 2.5m and the 10% yield is 50k x 10 (100%) is 500k. tenant with high risk means the chance of return on investment could be lower. I could be completely wrong though.
How many bedroom house need hmo or don't need which type?
3 or more but in how many rooms?
Research