Things to watch out for and possible solution – Mr. & Mrs. Kanwar

Motivated Seller 5 – Mr. & Mrs. Kanwar

Things to watch out for:-

1. Would work as HMO – but may need to add extra shower room.
2. Licence required for HMO occupation – speak to council to check that is likely to be granted.
3. Will need redecoration – check last updated kitchen/bathrooms.
4. Are they allowed to sublet against this type of mortgage (just in case you arrange a lease option).
5. Payments are high due to type of loan.

Did you ask?

1. What is general parking like in this area? (Possible issues with council for HMO letting).
2. Are rooms double or single?
3. If we could move quickly what price would you be happy to accept?
4. When do you need to move for your work?

Solutions:-

1. Discounted (BMV) purchase outright – residential or commercial (65% lending).
2. Lease option would pay their mortgage – check this is acceptable to their bank. HMO rent would more than cover this.
3. 3 month purchase option = take control, renovate, revalue and then get mortgage on
a) higher valuation or
b) against potential HMO rental opportunity

N.B. They won’t be able to do a part-now/part-later deal