Bank Lending on Professional Hmos
Firstly we are not mortgage advisors however we sell ready made Professional HMOs and many want to get a mortgage on these properties. The reality however now is that banks want to see experience on Professional HMOs. More they look to value them as only brick and mortar if they are not over x number of rooms. It seems many times it depends on the exact surveyor. For example we have a professional HMO in Doncaster that is a 5 bed that rents each room approx 100 a week was just valued at 140k. Contrarily we have a Manchester Professional HMO which is a 4 bed generating 23,000 was only valued at brick and mortar value of 100k.
Too many go to courses and think that the banks are not prudent lenders as in the past. What we have seen first hand is expect to have money in the deal….expect to leave money in the deal….These are real time experiences of doing over 45 Professional and Social HMOs.