Buying a former HMO, to live in

[StillTryingtoBuy]

Hello, we’re looking at purchasing a former HMO, for us to live in. It has been well maintained, 8 adults and it is split into 8 bedrooms and one large kitchen / social space. Most of the bedrooms have en suite. No kitchenette type facilities, just one big shared kitchen. Fire doors throughout and numbers painted in the doors - it is very clearly a HMO. We will need a mortgage. Would the norm be to ask the landlord to ensure the property is vacant / visible signs that it is a HMO eg numbers on doors removed before the bank come to value? Would you declare to the bank at some point that it is a former HMO?

You will need to apply for planning permission for change of use. It is likely to be granted but its worth paying for pre application advice as it could not be approved if there is a shortage of small accommodation in your area. You can do this before you own the property
The mortgage company shouldnt care about the door numbers but i would remove any internal door locks.

Basically you buy the house as seen, so removing door numbers, locks etc is down to you

The bank will know it is an hmo as it will be licensed as such. Don't try and hide it from them!

What @Geneticsbunny said about planning. I know of quite a few properties local to me that have been sold as flats, family has bought intending to convert back to a house but the council has been very difficult about it as they have a policy not to reduce the number of dwellings. Definitely speak to the council prior to buying (but be aware these conversations are non binding).

I don’t think removing door numbers is going to hide that it’s an HMO

Thanks - I wasn’t thinking of hiding that it’s a HMO, I had read somewhere though that the bank would need assurance that it is no longer going to be operated as a HMO and will be lived in as a family home, numbers on doors were one of the things mentioned and I wondered if anyone had any personal experience of going through this and what the process / timeline / order of things was like.

Yes that’s what I thought but have since read about mortgages being turned down because the bank have decided that the house is still a HMO, when they’ve done their visit.

Oh yes, I’m not trying to hide it - just looking for information about how people have satisfied the bank’s requirement that the house being bought will be lived in as a family home and not operated as a HMO as the banks seem to take a bit of a tick box approach from what I’ve read, so wondering if anyone has been through this.

Thank you - do you when we would need that planning permission / change of use though as the banks seem won’t give a residential mortgage on what they perceive to be a HMO?

You do the planning permission prior to exchange. Although legally you dont need to mention to the owner that you are doing this, you absolutely should get thier agreement to wait for the result before exchange. You need to trust them to some extent though - because once the permission is granted there is nothing to stop them marketing to someone else at a higher price.. I would recommend doing it through solicitors.

Thank you - so far the seller seems very decent but definitely will make sure we are legally protected. We are at the point of offering only but have the sense they are keen on our offer (we are local and committed etc plus quiet market) and want to make sure we use this opportunity to iron out as many of the things that could jeopardise it all down the line as possible.

I'm as sure as I can be that that isn't the case. You need planning permission to convert to an HMO, but not to convert back to a family home.

As for the bank I think as long as you remove door locks that should be fine. I'm not sure though.

There is legislation that says this is permitted development and doesn’t need pp. BUT the legislation also says that each local authority can remove permitted development rights if they wish. Ours has, in this respect (and others). So do need to speak to council.

Yes and also I think different when it is a large HMo as this is, with 8 separate tenants.

we bought a 5b house 2 years ago. It was supposedly a divorcee living here with her kids until youngest was 18. But…. It was clearly an unofficial HMO. Fire doors, Yale locks on all bedroom doors and big padlocks on cupboards etc.

Check the council tax situation! Somehow a prior owner got our extension set up as an annexe and we now have to pay half of band A in addition to our normal band. (And to get it declassified i need to remove patio doors etc so will incur work to sort out)