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?
The answer is quite complex. Yes, HMO licences in Scotland could be transferred to another person, but only under certain conditions and short term (initially for 1 month). Let’s check Housing (Scotland) 2006 Act and its Explanatory Notes.
Section 136 states that an existing HMO licence transfers to the new owner of a licensed property and lasts for one month from the date of purchase, provided that the new owner is already entered on the local authority’s register of landlords. If the new owner submits a licence application before the end of that month, the licence will continue in force until that application is determined, as for renewals. If the new owner is not a registered landlord, the licence expires on the date that ownership transfers.
Housing (Scotland) 2006 Act Explanatory Notes
So, lets assume we have an HMO licenced property on the market in Edinburgh. If the new owner is already a landlord registered in Edinburgh, the HMO licence will transfer to the new owner for 1 month from the date of purchase. The new owner should apply for a new HMO licence within the first month of purchase and the old HMO licence will be in force until the application has been processed.
If the buyer was not a landlord registered with Edinburgh Council, the old HMO licence will expire on purchase.
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
Please note that although this post covers HMO licences all over Scotland, not only in Edinburgh, different regional authorities (councils) may use different interpretations of the legislation. Before making any decisions, we would advice you to discuss any questions with the licencing team within your council or to contact a local letting agent / property management company specializing in HMO properties.
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Very professional and helpful. I have been using ELC to rent out my property since August 2022 and they have been very easy to deal with and very responsive to all property related matters. Would highly recommend to anyone. I then used ELC to sell my property and was very lucky to have Christina as my selling agent. I was selling from abroad and Christina just consistently went above and beyond for me throughout the whole process. I have never received such a personable and professional experience selling or buying a home, as I did this time with Chris. She was a godsend from start to finish and a true credit to Elc. I would recommend to everyone!
D Bro (Alotoffish)
2025-04-15
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I have had a fantastic experience, from the first moment I felt listened to and respected, throughout the entire process I have felt supported and we were able to get the sale we were hoping for, and I know it is due to the hard work of Christina and everyone else at ELC
Jade Taylor
2025-04-15
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Christina is a fantastic agent and was so helpful & assuring throughout the process of buying our first house. She was upfront, genuine & always came back to us very quickly whenever we had questions (& we had plenty!). Christina really steered the ship for us & got a lot done in quite a short timeframe. A lovely, first-class sales consultant. From J&S
David Garcia
2025-04-09
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Morgan was on time, very nice and helpful answering all my questions throughout the flat viewing and made me feel welcome. Thank you very much.
Adebayo Excel
2025-04-08
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Great 👍
Louise Sofokleous
2025-04-08
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I am a novice landlady but Alex of ELC was brilliant in helping organise all the relevant certificates and advertising the property. He informed me every step of the way. Morgan was also brilliant and answered all my many questions. ELC found tenants straight away and they moved in a couple of weeks later. Great service and would highly recommend.
Lisa Venter
2025-04-07
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The team at ELC have been a breath of fresh air.
Alex came back straight away with an application form and Holly was personable and helpful during the viewing. This was reassuring as it’s good to know you can communicate with your agents if you are renting and need support later down the line with the property. Loads of agencies out there are pretty rubbish at comms and use lengthy, clunky web processes so it’s good to experience this.
Helen
2025-04-04
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