Commercial Investment valuation (MV1)

Planning and licencing

For rooms of 7 and above, planning will be required regardless of whether the property sits inside or outside article 4.

For HMOs with 6 rooms or less may not require planning permission to be eligible for this valuation method if they are either outside of article 4 or if the property was made a HMO before the article 4 legislation came in.

Borrowers that are exempt should have a certificate of lawful use, which can be provided by your local council that would need to evidence that the property has indeed been a HMO since before the legislation came into force. Borrowers that are eligible but don’t hold a certificate of lawful use will need to apply on the planning portal and provide evidence to support the property being used as a HMO for the required period and may use the following documents to support their application:

• Tenancy agreements
• Afa David agreements from vendor, operators and tenants

Panel valuers

Valuers that are usually on these panels are usually local valuation firms that are on the VAS panel or the Appraisers panel.

Experience required

For most commercial lenders, experience is required on a HMO Mortgage and should be 12 months landlord experience. However, there are some lenders that will make an exception to this where the borrower has strong personal income which should be at least £35,000