Tuesday, 8 November 2016

Kensington Opens Doors to HMOs..But...

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Kensington Mortgages have changed their attitude and CML Handbook instructions relating to houses in multiple occupation. Up until yesterday the lender specified via Part 2 Section 6.6.4 that  it would not lend where the property came within the definition of a house in multiple occupation? 

The new answer to Section 6.6.4 reads:

Yes, on the basis that the property is let on an Assured Shorthold Tenancy and any required local authority licence is in place. Please provide confirmation prior to Completion if the property falls within the definition of a house in multiple occupancy as this facility is only available on specific Buy to Let schemes.

Lawyers on the Kensington Mortgages conveyancing  panel should pay particular attention to the caveat and disclosure obligations. 

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