How to get HMO for a new purchase? planning required??

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M
Mr X
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If I intend to buy a property that is currently not a HMO then make it a HMO what is the best way to do so with regards to mortgages/ licensing and bad tenants? (My borough is Harringey north London)

1. Do I buy a property with a normal BTL mortgage Ė rent it out as a unlicensed hmo - then apply for a licence?

In this scenario
a) If I get a bad tenant am I unable to serve them a notice and get them out? Is this true?
b) If I get the HMO licence, will they contact my mortgage lender and tell them I have a HMO licence or will I have to? If they or I have to, this will then breach my mortgage, so what would I do then?

2. Do I buy a property with a normal BTL mortgage Ė apply for a licence - then rent it out as a HMO?

In this scenario
a) If I get a bad tenant am I still unable to serve them a notice and get them out? (even though i applied before renting)
b) If I get the HMO licence, again I assume I will be in breach of my mortgage like in 1.b)?

3. Do I buy the property with a HMO mortgage - rent it out as a unlicensed hmo - then apply for a licence?

In this scenario
a) If I get a bad tenant is the answer to this the same answer for 1.a)?
b) If I get the HMO licence, I assume this would not breach my mortgage as itís a HMO mortgage so I will be ok?

4. Do I buy the property with a HMO mortgage - apply for a licence - then rent it out room by room?

In this scenario
a. if I get a bad tenant is the answer to this the same as 2.a)
b. If I get the HMO licence, I assume this would be the same as 3.b)?

5. If I buy a property thatís a whole house and then want to change its use to hmo do I need to apply for planning permission?

Ive contacted my local authority are do tell you some information but are very vague as from what I gather the rules vary depending on the individuals situation..

How and what type of mortgage do I apply for on a property that is intended for a HMO?
How do I decide if I donít know whether they will give me a licence or not?

I donít want to break any laws or breach anything Iím just trying to understand the right order in which to do things baring in mind I do not want to pay for a HMO mortgage when im not going to be granted the licence..

Any help would be appreciated??

Thanks


11/12/2007 00:00

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