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Commercial HMO
Definition
An HMO property that is classified as commercial premises, often requiring different planning permission and mortgage products.
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Related FAQs
A commercial HMO mortgage is for properties classified as commercial, typically larger HMOs or those with specific property types.
Was this helpful?Commercial HMO mortgages usually have higher rates, shorter terms, and stricter criteria than residential ones.
Was this helpful?Commercial HMO mortgage rates typically range from 5.5% to 8.5%, higher than residential HMO mortgages due to increased risk and shorter terms.
Was this helpful?Yes, many commercial properties can be converted to HMOs, but you'll need planning permission and building regulations approval. The property must meet HMO safety standards.
Was this helpful?Criteria include significant landlord experience, strong financial position, property suitability, adequate rental income projections, and compliance with commercial property regulations.
Was this helpful?You'll need change of use planning permission from commercial to residential, building regulations approval, and potentially additional consents depending on the property type and location.
Was this helpful?The conversion process typically takes 6-12 months, including planning applications (8-12 weeks), building work (3-6 months), and final inspections and licensing.
Was this helpful?Conversion costs typically range from £15,000 to £50,000 per unit, depending on the property condition, required works, and local building standards.
Was this helpful?Some lenders offer commercial HMO mortgages that include conversion costs, but this is less common than with residential HMO mortgages. You may need separate development finance.
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