What should you do to transfer an old Edinburgh HMO licence
HMO (Houses in Multiple Occupation) licensed properties achieve higher rents and higher asking prices in comparison with similar non-HMO properties when they are put for sale. It means that obtaining an HMO licence, in Edinburgh or elsewhere, can add value to the property and boost rental income. It is all true for the current owners/sellers but what about potential buyers? Does paying a premium for an HMO licensed property make sense? It could – assuming that an HMO licence could be transferred. So the big question is:
Are Scottish HMO licences transferable to another person?
Does it make sense to keep the old HMO licence?
Yes, it usually does as, as new owners will have to comply with ‘old’ HMO requirements, not the current ones. Legislation is more and more stringent every year, so any grandfather clause tends to be beneficial. For example: if the third bedroom’s width is less than 2.25m, such room would not be suitable under current HMO regulations. However, if the property has a valid HMO licence issued in the past, old criteria would apply and a room with less than 2.25m width could become a bedroom.
Seek HMO advice first