It’s not so widely known that most mainstream buy to let lenders will allow upto 4 or 5 students on one single tenancy agreement provided the property doesn’t require a HMO licence.
Great news if you're looking to refinance or buy a new property to let to students.
What that means for you is that there are some very competitive options out there and you can obtain standard buy to let rates and deals but with an increased yield since the property is on a multi let basis, so its good news all round.
"4 students on 1 AST will give you lots of options and therefore access to the cheapest funding out there".
There is still a lot to consider as lenders have another layer of criteria – they’ll want to know how many communal rooms are let, most require retaining a communal room, whether there are locks on bedroom doors and whether it’s a heavily crowded student area etc etc. All lenders then tend to fall on one side of the fence depending on the answers to this next layer of questioning.
At The Buy to Let Broker we do find very competitive deals every day for our clients letting to students, as this is a space we are very active in.
If you let on separate tenancy agreements, even with say 4 tenants it does cut out quite a section of the market but some great deals are still generally available for us to quote to you.
Pushing on past 4/5 students, whether the property requires a HMO licence (House of Multiple Occupation) or not, you will find a premium is being paid in both rate, and also fees as mainstream lenders step away at this point, leaving the more niche lenders who specialise in this area.
Either way, for the best the market has to offer – don’t be afraid to call us and chat through the details of your scenario, chances are we can keep you within the terms and conditions of your lender, and help keep profit levels up for you with access to the right lenders and deals.
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