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Shawbrook helps investor with £3.35m refinance on nine HMOs

Shawbrook partnered with Sirius Property Finance to help an experienced investor remortgage nine HMO properties worth £3.35m.

The properties were purchased using bridging finance in June 2018, however as the term was coming to an end the client wished to remortgage quickly to avoid any fees.

Robert Collins, co-founder of Sirius Property Finance, said: “Along the way we had to liaise with the valuer to have the original reports readdressed and to clarify the net rental position as they had originally used a 20% discount that affected affordability.

“However, due to the partnership between me, the client and the team at Shawbrook we were able to provide a solution within the short time frame. It was a fantastic team effort and I’m delighted that our partnership with Shawbrook had a positive outcome for the client.”

Peter Turner, senior development manager for Shawbrook Commercial Mortgages, added: “The turnaround on this case was tight but the teams from both Sirius and Shawbrook worked together to re-mortgage the nine HMOs of the customer, avoiding the bridging finance penalties.

“I’m delighted we were able to help with this case and look forward to continue working with our newest strategic partner.”

Using Shawbrook’s LRI2 product on a 10-year, interest-only term, the team worked with Sirius to ensure the deal was completed in time.

The AIP was submitted on 6 November and the case was completed before Christmas ensuring that the bridging finance was repaid within the term and allowing the client to avoid over-run penalties.

Source: Mortgage Introducer

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Landlord convicted of unlawfully evicting tenant now fined for running unlicensed HMO in Telford

A landlord from Telford who had previously been convicted of unlawfully evicting a tenant has now been fined for running an unlicensed house in multiple occupation.

In March 2017, David Beattie admitted threatening violence against a tenant in his property in Dudmaston, Hollinswood.

Shropshire Magistrates Court sitting in Telford on Monday heard that Beattie, of Priorslee, was not deemed by Telford & Wrekin Council to be a ‘fit and proper’ person. This is one of the requirements to having a licence to operate an HMO.

As Beattie didn’t meet this requirement he couldn’t apply for the HMO licence and, as a result, could not accommodate more than four people at his property.

The court heard that Telford & Wrekin Council could identify from leases that there were five people living there.

Beattie pleaded guilty to controlling and managing the HMO without a licence. He was fined £284 and ordered to pay costs of £410 and a victim surcharge of £30.

Councillor Richard Overton, Telford & Wrekin Council’s cabinet member for enforcement, said: “This latest conviction gives the council the opportunity to apply for a Rent Repayment Order to get back any rent paid in housing benefit to Mr Beattie during the offence period. We can also advise any tenants who paid privately to live at this property on how they too can apply for a rent payment order for the same period, between June 5 and September 19 last year.

“We would also encourage any tenants who privately rented accommodation from Mr. Beattie in Dudmaston, Hollinswood to contact us as they may too be able to apply to refunds to their rents.

“We are committed to ensuring all tenants in the borough live in safe and well-maintained accommodation. HMO licensing plays a big part in ensuring this.”

A licensable HMO is defined as any rented property with five or more people living as two or more households. Before October 1, 2018 only HMOs that had three or more storeys with five or more people required a licence.

Source: Shropshire Star

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Plans submitted to turn terraced house in Connah’s Quay into ‘house in multiple occupation’

Plans have been put forward to turn a terraced home on Deeside into a house in multiple occupation (HMO).

It would see the property on Church Street, Connah’s Quay, converted to include four bedrooms to house a maximum of five people.

According to planning documents, the house has been vacant for a number of years.

Carlatton Property Ltd, which is behind the application, said the proposed living accommodation is up to the standards required for HMOs in Flintshire.

In a covering letter written on the company’s behalf, planning agent Jennifer Sanders said: “The application site comprises a three-bed, mid-terrace dwelling with rear garden and an attached outbuilding.

“While the overall layout of the property is not proposed to alter, some minor internal alterations are proposed at ground floor level.

“The resultant building will comprise a four bedroom (five person) HMO, with separate kitchen, utility and living room, as well as an upstairs bathroom and additional downstairs toilet.

“The existing dwelling has been vacant for some time and require substantial refurbishment.

“The proposed development seeks to bring the property back into appropriate use.

“Furthermore, with no external alterations and very few (if any) other HMO units located in the immediate vicinity, the proposal will not change or harm the character of the surrounding area.”

Comments are currently being invited on the application via the Flintshire Council website.

Any feedback must be received by March 5 and the local authority is aiming to make a decision on the proposals before the end of March.

Source: Deeside

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Highland landlord prosecuted for unlicensed HMO

A Fort William landlord has been successfully prosecuted for operating a House in Multiple Occupation (HMO) without a licence.

Mr Harjinder Singh Randhawa, the owner of the 1st & 2nd floor flat at 39 High Street, pled guilty and was fined £1800 at Fort William Sheriff Court on January 28.

Whilst conducting an investigation into an accident at work, environmental health officers from Highland Council had cause to visit the property and found it to be occupied by seven people who were all residing in the property as their main residence and requiring to share kitchen and sanitary facilities.

The property was found to be in a relatively poor standard of repair throughout and failed to meet the council’s adopted standards for HMOs. Of particular concern was the lack of any fire safety precautions and the poor condition of the electrical installation within the property.

Councillor Ian Cockburn, chair of the licensing committee, said: ”Ultimately the HMO licensing scheme was introduced to protect tenants and help ensure properties are safe, and so it is important that the council takes action to protect tenants in these cases.

“I am pleased that in imposing this level of fine the court has reflected the importance of licensing and demonstrates to responsible landlords who have made the effort to comply with the legislation and bring their properties up to the required standard, that less responsible landlords are actively being pursued by the council. I would encourage both landlords and tenants to contact the council if they have any concerns about their property. Officers are here to help and offer advice.”

Graeme Corner, senior environmental health officer, added: “We hope that the significant fine imposed in this case sends out a strong message to landlords in the Lochaber area and throughout the Highlands that they must obtain a license if their property is being occupied as an HMO. Whilst our service always prefer to work with landlords to ensure compliance, we will not hesitate to take robust action where the health, safety and well-being of tenants is comprised by poorly managed and maintained properties such as in this case.

“The environmental health service will continue to take action against those landlords who do not apply, so I would urge all owners and agents to ensure that their properties are meeting legal requirements.”

Source: Scottish Housing News