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Commercial HMO
An HMO property that is classified as commercial premises, often requiring different planning permission and mortgage products.
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Finance solutions for commercial HMO properties.
Commercial HMO mortgages are specialized financing solutions for large-scale, multi-occupancy properties that often exceed the scope of standard residential HMO lending. These properties typically include former commercial buildings converted to residential use, mixed-use developments, or purpose-built accommodation blocks with significant numbers of units. Commercial HMO mortgages are assessed differently from residential products, with underwriting based on commercial property principles including detailed cash flow analysis, professional property management requirements, and commercial valuation methods. The loans often feature higher lending amounts (frequently above £1 million), longer terms, and more complex legal structures. These products are ideal for experienced property developers and investors looking to create large-scale HMO operations or convert substantial commercial properties into profitable rental accommodation.
Financing for multi-unit commercial HMO conversions.
Loans available for properties above £1 million.
Tailored commercial terms up to 25 years.
Support for commercial property management structures.
Combined purchase and development finance available.
Underwriting based on commercial rental yields.
Check if you meet our criteria for commercial hmo mortgages:
Our streamlined mortgage process makes it simple and stress-free:
Discuss your mortgage needs and current situation with our specialist advisors.
Our experienced team works to ensure your mortgage completes as quickly as possible. We'll keep you updated throughout the process and handle any issues that arise.
Live rates from our specialist lenders for commercial hmo mortgages:
Important Notice: The rates displayed on this page are not currently correct and should not be used for decision making. Please contact us for up-to-date rates.
No rates available for this category at the moment.
Please check our rates page for all available options.
Understand the costs involved with commercial hmo mortgages:
Fees can vary significantly between lenders and depend on your specific circumstances. Our brokers will provide you with a detailed breakdown of all costs before you proceed. Some fees may be negotiable or waived depending on the lender and loan amount.
Find answers to common questions about Commercial HMO Mortgages:
A commercial HMO mortgage is for properties classified as commercial, typically larger HMOs or those with specific property types.
Commercial HMO mortgages usually have higher rates, shorter terms, and stricter criteria than residential ones.
Most lenders require a minimum 30% deposit for commercial HMOs.
Commercial HMO mortgage rates typically range from 5.5% to 8.5%, higher than residential HMO mortgages due to increased risk and shorter terms.
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.
Criteria include significant landlord experience, strong financial position, property suitability, adequate rental income projections, and compliance with commercial property regulations.
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.
The conversion process typically takes 6-12 months, including planning applications (8-12 weeks), building work (3-6 months), and final inspections and licensing.
Conversion costs typically range from £15,000 to £50,000 per unit, depending on the property condition, required works, and local building standards.
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.
Important terminology related to Commercial HMO Mortgages:
