I have been approached again recently (as I repeatedly am!) by a client wishing to let a HMO to a housing association style body. The HA and the client insist that these are NOT vulnerable tenants they are just being rehoused and insisting that loads of landlords do this with ordinary mortgages as well as commercial lenders. They insist they are not vulnerable ie substance abusers, old, young, ex-offenders etc and cite the following:- Low Level support services People who have demonstrated the confidence and ability to carry out basic living skills independently but need support in a few areas e.g. with financial issues and social isolation. and/or In need of move-on accommodation from a medium level support accommodation service. So yet again I have run it by the main HMO lenders (I know the B2L lenders would refuse anyway!) and they have all refused. I warn repeatedly against letting on contracts when you do not know who is going to be in your property and especially where there are likely to be vulnerable tenants and hopefully this reinforces my point. Remember you are not just in breach of your mortgage terms but you may also be invalidating your insurance; its not the small claims you have to worry about it’s the million pound liability ones! Dont say you werent warned! PS This is NOT the same as owning a care home where funding is lent to the business, this is a property investment and different rules apply.
Posted on: Wed, 25 Jun 2014 14:09:11 +0000
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