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  • Legal FAQs

    Is HMO conveyancing more special than BTL?

    hi,

    I am in the process of buying my first HMO, although I do own a couple of normal BTL properties (normal I mean rent to a family).

    My mortgage advisor saying that as it is a HMO, the mortgage products are limited. He once suggested that the contract is a single AST, he could try a normal BTL mortgage but seems he abandoned that idea now.

    I tried to get some online quote for conveyancing, as the ones recommended by estate agent or my mortgage advisor are bit expensive. It turned out some online conveyancers told me that they won't handle any HMO property.

    So if my contract is a single AST, is there a chance that I can go to a normal BTL product or conveyancing? If not, why is hmo conveyancing so special, so is there anything I should pay more attention to (comparing to a normal BTL)?

    Many Thanks

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    I am not legally qualified but have several HMOs and can not remember there being any difference re the conveyancing.  Your mortgage advisor sounds ill informed.  Don't try and con the mortgage company - tell them it is an HMO.  There are plenty of  suitable products around.  In fact you want them to know it is an HMO because they will factor in the potential income rather than a single rental income, when assessing affordability.

    As regards conveyancing,  I am always amazed how we as a group try to save a few quid on a purchase of say £200k.   Imagine finding out in a year's time that the conveyancer screwed up and you have no right of way through to your property, or there are covenants that prevent you doing mundane things.  Will the £100 you saved on conveyancing really be worth it?   Put the price of conveyancing in the context of the size and importance and complexity of the purchase.  Get a good solicitor and pay them to do a proper job.  I budget about £600 basic plus disbursements plus VAT. So about a £1100 overall, give or take £100.   Always buy Chancellery Insurance.  It's about £20.

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