The lender’s HMO hybrid valuation takes elements from the its standard residential and commercial valuations but contains additional details specific to HMOs – such as demand for HMO properties within the local area and whether planning is in place for any conversion works.
The short-form style report will be available on all small HMOs up to six bedrooms and valued up to £1m. Shawbrook said this option will be more cost effective for landlords with smaller properties and will save time, with valuations conducted within seven days.
David Morris, head of credit at Shawbrook Commercial Mortgages, (pictured) said: “We have been working closely with our valuation panel at Appraisers UK recently in an effort to clarify the valuation of HMO properties and improve the service that customers receive.
“The new HMO hybrid option will also result in significant cost benefits and time-savings for our brokers’ clients. It forms part of our ongoing commitment to improving our service proposition, and we will continue to work side-by-side with our partners to provide an ever more efficient offering in 2017.”
For large HMOs (seven beds or more) and properties valued over £1m, a commercial valuation will be required as before.