Evicting vulnerable tenant in hospital – Landlord Action response9:55 AM, 3rd July 2019
About 3 weeks ago 69
Can anyone advise how mortgage providers value a house for mortgage purposes? As an example take an HMO which would be valued at £300,000 as a single family home, based on similar properties in the area, and which cost £310,000 including renovations and alterations (with 6 rented rooms) bringing in a total of £36000 in rent per annum.
Would they value the house based on
A. It’s value as a single family home or,
B. It’s value as an investment if sold to a buy to let operator.
If a buy to let investor was looking for an 8% yield then £36,000 income a year equates to a purchase price of £450,000 (I realise that these are gross, not net, values but you get the idea – there is a large discrepancy between the two values, £300,000 and £450,000).
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More