Buy-to-let
NatWest’s broker-only subsidiary, NatWest Intermediary Solutions, will now consider buy-to-let mortgage applications where a selective licensing scheme is in place in the area where the property is situated.
This is provided there are no issues highlighted by the valuer.
These schemes are implemented independently by each local authority to deal with specific properties in the private rented sector.
Paul Kane, acting head of sales at NatWest Intermediary Solutions, said: “Selective licensing has been an issue for brokers in specific parts of the country where they have been introduced by local authorities.
“With the expectation that the number of schemes will increase over the coming months and years, I am pleased that we are now able to accept applications from buy-to-let investors who want to buy a property in an area where they require a selective licence.”
What is a selective licensing scheme?
Property licenses are issued by the local authority and are necessary for Houses in Multiple Occupation (HMOs), where at least three tenants live sharing toilet, bathroom or kitchen facilities.
Following the introduction of new regulations in March 2015, councils now have wider powers to implement a selective licensing scheme, particularly where an area contains a high proportion of private rented properties.
There is no central directory of property licensing schemes so landlords should contact their local council to find out if they need a license. It is a criminal offence that could result in prosecution in the Magistrates Court if landlords fail to get a license.
