Hybrid Valuation

Hybrid valuations are usually provided by specialist Buy to Let lenders. We have been advised by these lenders that these are most effective where the property is:

• Located in an area with a large student presence
• Located in a major town or city
• With good HMO demand
• Not easily converted back to a family home

Properties not easily converted back to a family home will usually consist of a lot of ensuites within the property making it more suited to a co-living design.

Hybrid valuations for houses of multiple occupancy mortgages will use comparable evidence and also look at the investment value the property has within the adaptability of the property making it best suited to a co-living rental, which is usually a premium for the design, rather than the rental income being produced. It is important to note that these valuations might be hybrid and therefore including a specialist assessment but they are not full Market Value 1 (MV1) valuations, therefore valued on a Vacant Possession (VP) basis.

Panel valuers

Hybrid valuations are usually instructed with larger lenders that provide specialist buy to let mortgages and often use national valuation companies, rather than local valuers, but in some instances certain lenders may also use local valuers panelled out.

Planning and licencing

Properties eligible for Hybrid valuations usually will need to have planning, or to be exempt which is possible if the property is outside article 4, or has been a HMO since before the article 4 legislation came into effect.

Applicants buying properties that are existing HMOs must be sure to obtain planning confirmation as a decision notice for the property to be a HMO, or to provide a certificate of lawful use to provide to your lender to evidence the property is subject to lawful use.

Experience

Experience is not usually required for HMOs with less than 6 rooms with a hybrid valuation method. However, some lenders offing this product may require 12 months landlord experience.