Main Issues Relating to this case...

Unlicenced HMO

This case study looks at an unlicenced 5 Bed HMO remortgage to release funds

As a result of the of the changes to HMO Licencing rules, which made all properties let to 5 or more un-related tenants subject to mandatory licencing rules, councils were inundated with licence applications in certain areas.

A client contacted Balanced who had a 5 bedroom HMO which would now require a licence from 1 October 2017 (where it hadn’t previously). The licence application had been submitted in time as required and the relevant council had confirmed receipt, but due to demand 12 months later the relevant council had still not processed the licence application.

Each of the points above created a complex scenario which many lenders could not consider due to one or more of the points above.

Balanced Financial Services had thorough conversations with a specialist lender, and after explaining thoroughly the situation, evidencing that the landlord had done everything in their power to comply with the regulations and expert packaging, the lender were able make a policy exception and grant a formal mortgage offer on standard terms within their standard pricing structure.

This was possible due to Balanced Financial Services excellent relationship with lender Business Development Managers and our open and honest approach with underwriters.