jbw63

Registered with Property118.com
Monday 28th May 2018


Latest Comments

Total Number of Property118 Comments: 5

jbw63

9:33 AM, 16th May 2019
About 3 days ago

Reconsider Gas Safety Regulations alongside changes to Section 21

I agree with Blair, maybe no certificate needed for first 3 years on new installations, and then bi-annual after that.... Read More

jbw63

9:37 AM, 27th February 2019
About 3 months ago

Is this an HMO?

Apologies re typo above:
Additional Licensing should read: two or "more" households regardless of occupancy number.
ie the precise technical definition of an HMO ie House of Multiple Occupation. The Mandatory Licensing is considered to apply to "larger" HMO's ie five or more people.
Because of this, there is often confusion re defining HMO's.... Read More

jbw63

9:29 AM, 27th February 2019
About 3 months ago

Is this an HMO?

Hi Maria
My understanding is there is 3 types of licensing.
(1) HMO - that became mandatory nationwide from 1st Oct 2018 and it is a criminal offence if you are found not to have one if you are operating a larger HMO ie occupied by "five or more people [and] two or more households" (the 3rd storey requirement has been withdrawn).
The other two types of licenses are completely dependant on your individual council's policy as to whether they have applied for and are operating them in your area or not:
(2) Additional Licensing, which essentially means all properties occupied by two or households regardless of occupancy number, and
(3) Selective licencing - this would apply to all properties in the private rental sector regardless of the number of tenants i.e. you would be required to apply for a selective license if you legally need to issue AST's as opposed as to live in the property yourself and have lodgers.
Your first point of call should therefore always be the council that you pay council tax to for that property to seek clarification as to the licenses required.
Separate to this there will be planning conditions regarding some HMO's also dependant on an individual council's policy. Be aware of Article 4 designated areas.... Read More

jbw63

11:48 AM, 21st February 2019
About 3 months ago

Is this an HMO?

My current understanding is that the other thing you could do if it is not your primary residence is to claim that this new property is your 'second residence' as the condition is that you are going to need to legitimately live there part of the time, and then use lodgers contracts, and work that through with lenders and insurance companies. Again, if anyone can find a legitimate source of legislation that states you can do otherwise, I'd be interested to hear.... Read More

jbw63

11:37 AM, 21st February 2019
About 3 months ago

Is this an HMO?

Separate to the HMO question, it is my understanding that legally you cannot use AST's if you live in the same building unless the building is officially divided into separate flats and you inhabit one of these and your tenants the others. If you are living in the same flat or house, then your 'tenants' should not be 'tenants' with an AST, but lodgers under a lodgers agreement. Then regarding mortgage application, you will not have income under AST (and a buy-to-let mortgage) but it will be your own home as you will have a lodgers agreement (and normal residential mortgage with permission to have some lodgers). You need to be clear with mortgage company products - sometimes you can be mis-sold, but lenders can terminate your mortgage with minimal notice if they find out you are using the wrong product or abusing the terms of their agreement with you, ignorance is no defence. I heard about a case last month where someone used a buy to let mortgage for HMO and their mortgage company found out as the council informed them, they had under 14 days to pay back everything ie find other finance, it cost them thousands in penalties and re-financing. if anyone can find a legitimate source of legislation that states you can do otherwise, I'd be interested to hear. Good Luck. 🙂 !
PS Additionally you must be very clear when purchasing insurance products, misunderstandings or changing what you do without informing your insurance company can invalidate your insurance policy - and that might also be costly if you are unlucky.... Read More