An HMO is a property let to three or more tenants who are not one household and who share a kitchen, bathroom or toilet. A limited company buy-to-let, usually a special purpose vehicle, is a different mortgage and a different tax position from buying in your own name. High-street single-let products usually will not do either. Specialist lenders will, and we say which route fits before you apply.
- Small HMOs (often up to six rooms) and larger licensed HMOs
- Lenders will require a council HMO licence or planning permission, where the rules require it
- SPV companies that only hold property, which most lenders prefer
- Personal guarantees are normal, and company tax treatment is a question for your accountant