Shared Facilities

In England a house is usually an HMO when three or more people who form more than one household share a kitchen, bathroom or toilet. A mandatory licence generally applies at five or more occupiers. Planning use often changes at seven occupiers (sui generis). The mortgage valuer may count fewer bedrooms than the brochure if rooms fail size or amenity tests.

There is no single maximum HMO loan. Specialist lenders publish their own loan-size and LTV caps; several go to high six- or seven-figure loans on large houses. The binding limit is usually the lower of the lender’s maximum loan, the LTV on the valuation, and the stressed rent. Ask for a quote on the actual house rather than a headline maximum.