Buy To Let Flashcards
What are the three different buy-to-let categories?
Category 1 - a single individual unit let to a single household on a single assures short hold tenancy
Category 2 - a single residential unit let on a single AST but to individuals on a sharing basis up to a maximum of four individuals.
Category 3 - licensable houses in multiple occupations (HMO’s) and multiple units held on a single title.
RICS Guidance note The Valuation of buy-to-let and HMO properties 1st edition
What basis should a buy-to-let be valued on?
Either both the market Rent and the market value to determine the size and type of loan to be extended to the borrower.
What approach to valuation may be considered for HMO’s?
It is reasonable to adopt an income approach method of valuation assuming there is a continuing rental demand for this type of accommodation in the area.
