If you enter the New Street Station in Birmingham, you must have noticed that the HS2 development is underway. It was fun to watch and I was surprised by the number of workers on site.
During my last trip, I started wondering where they live. Some will be local, but many will come from outside the region, which begs the question – where are they staying?
Given the situation of the nearby business owner, it can be said that Rosie’s Coffee Shop was asked by a worker if she knew about the accommodation. They need to be somewhere in the week without binding to a long-term contract with a fixed price, including utilities.
This made Rossi think. She has been a landlord with a single residential property for several years, but believes investing in HMO may be a great way to use her business to retain profits while increasing her portfolio. She has seen a local property for sale, which may be ideal for renting out to four tenants, but since she has no HMO experience, she sought the broker’s advice.
The agent said Rosie should contact her local authority before doing anything to check if the instructions in Section 4 are in place. They explained that the instructions in Section 4 removed the allowed right of development, which means that certain changes to the property, including the conversion of the house to an HMO, require a planned permit.
They also advised her to check if the property requires a permit. While real estate with four tenants does not usually require an HMO license, some councils do have other licensing plans that violate the requirements and landlords can face significant financial fines.
The Planning Department informed Rosie that the instructions in Section 4 were in place, although the property had previously been approved by the plan to change the use from C3 to C4 properties and therefore could be converted without planning. She also learned information about applying other licensing programs and had to be properly licensed.
How CHL mortgages from intermediaries help
Rossi returns to the broker to arrange the mortgage. She was told that few lenders would lend to trading businesses and even fewer would consider accommodation using services, but they knew that the agency’s CHL mortgage would consider her case.
Our CHL 2 Series offers a wider range of standards for landlords with complex lending needs, such as trading companies, which offer 2- and 5-year fixed rates for individuals and limited companies, up to 75% LTV. We can help a wide range of property types including homes, apartments, serviced accommodation, new construction, HMO and MUFB, and short-term leases.
To learn more, please stay in touch with our sales team members.
For more information on complex purchase content, click here to read the special report
