BTL Property Owner

Registered with
Saturday 21st March 2020

Latest Comments

Total Number of Property118 Comments: 2

BTL Property Owner

14:05 PM, 12th October 2021, About 5 days ago

Lender says letting out as licenced HMO breaches terms and conditions?

I don't know if my experience helps, but I faced virtually the same problem few years back with my large BTL property. Out of the blue I received a similar letter from my lender. My agent had sub-let my property to a company who let out individual rooms to students and professionals which I was aware of, but blissfully completely unaware of HMO licencing. After about 18 months (unbeknown to me and, allegedly, my agent as well) this company had applied for and received an HMO Licence in their name. At just under 2 year mark I remortgaged the property for a further 2 year discounted mortgage interest rate. About 3 months later I received a letter from my lender advising me that they have learned from my council that the property is now a Licensed HMO. They said that this was in breach of their mortgage terms (i.e. property should only have been let to a single family) and asked me how I was proposing to resolve the issue. My agent said there was no demand for single family let and advised me to re-licence the property as an HMO in my own name for which some additional work was necessary to ensure compliance. I reluctantly agreed to this proposal, had the property vacated and advised my lender accordingly. However, my lender said that I had to re-mortgage the property in accordance with their HMO BTL mortgage T's & C's which were different to the single family BTL T's & C's. Having re-morgaged only a few months earlier, they would not transfer me to their HMO BTL mortgage. I had to re-apply and go through virtually the same process again and pay for all their standard fees (property revaluation, mortgage arrangement, etc).
As they say, ignorance is no excuse. It was an expensive lesson learned.
In your case I suggest you clarify your lender's issue(s) clearly before taking any action. Good luck.... Read More

BTL Property Owner

17:35 PM, 1st March 2021, About 8 months ago

Property118 landlord overjoyed selling tenanted portfolio with National Residential for half a million in just 26 days

Seems a great result, but what price did you achieve for your client in relation to average "market value" or "guide price"? I have seen averts by a number of other similar entities who claim to sell your properties fast, but at well below market value, e.g. as low as 80%. Of course, you have to cover all the costs involved (which could vary significantly from property to property) and still make profit; but what sort of price can you achieve? Also, can you sell properties of any value or is there a maximum limit?... Read More