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Can a buyer apply for HMO licence beforeexchaning on a house and how long would that take?

6 replies

CatAndHisKit · 29/05/2021 01:59

My investor buyer inexplicably dragging his feet before exchanging - solicitor is avoiding my agent's questions as to why the delay.
I ujst thought maybe he wants to make sure he get the licence as I've read on MN that these can be limited in numbers for an area?
He's been a nightmare throughout and although he's progressed slowly, he also lied / omitted info previously along the way.

I wonder if that's what he's doing and how long does it take to get a licence, and also what aer the chance he won't get it? there are HMO's in the area, quite a lot bu not many on my street itself - only a couple.

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CatAndHisKit · 29/05/2021 02:01

sorry, it should be of course 'before exchanging' in the title!

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Livingintheclouds · 29/05/2021 07:36

I doubt it. I've just got one because the street the property is on has been designated as requiring all rentals have an HMO licence, whether they are HMOs or not (it's a small two bed flat). Anyway, it was an 18 page form and the application fee was over £500. If it was a real HMO the cost could have been over £1000. As part of the process, you have to inform all parties involved: the freeholder if it's a leasehold flat, the landlord (if it's not the landlord applying), the tenant etc. There are firms that apply on your behalf for a fee, but I'm pretty sure you can't do it unless you actually own the property. I think it took a few weeks before I got the actual licence.

Mosaic123 · 29/05/2021 08:09

Wouldn't it need inspecting before a licence is granted?

CatAndHisKit · 30/05/2021 02:40

thank you, Living and Mosaic - so that's not the reason, who knows why is he delaying then.

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5littlechickens · 30/05/2021 08:40

Are you in an Article 4 area for HMOs? This means you have to apply for planning permission for HMOs regardless of size. Maybe it's this rather than a licence they have applied for

CatAndHisKit · 31/05/2021 00:39

I wouldn't know, 5little, what does that mean? And if that's what he's doing - is it usual to apply before exchanging? Also how long would it take for the decision. If he was worried about it it beggars question why hasnt he done this long ago before paying various fees...

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