Whitey Grandad Posted 28 October, 2010 Posted 28 October, 2010 Do you mean that you have a standard mortgage on it, or no mortgage at all? If you have a mortgage then I'm pretty sure that you need to notify the company.
Smirking_Saint Posted 28 October, 2010 Posted 28 October, 2010 You need to let the mortgage company know really. Unless you can let it to a couple of mates you trust so nobody will know. Had enough already then ?
Dr Who? Posted 28 October, 2010 Posted 28 October, 2010 Yep my mortgage company had to be informed. it is all to do with legal implications. If you do not keep up payments on your mortgage then the tenant has rights in their contract. So can cause problems if they do not know.
toofarnorth Posted 28 October, 2010 Posted 28 October, 2010 And of course has implications with house insurance.
Dr Who? Posted 28 October, 2010 Posted 28 October, 2010 Yep my mortgage company had to be informed. it is all to do with legal implications. If you do not keep up payments on your mortgage then the tenant has rights in their contract. So can cause problems if they do not know. I did not really finish that, if you do not keep up payments then they cannot just kick the tenant out as they have rights.
Chez Posted 28 October, 2010 Posted 28 October, 2010 If the mortgage company find out they can ask you to pay the whole mortgage in one go as you will have breached their policy. They have to find out though. With regards to the insurance issue, you can be up front with the insurance broker that it is rented, just make sure your insurance company does not use a policy supplied by the mortgage company. Insurer can't share your information with a lender.
saint_stevo Posted 28 October, 2010 Author Posted 28 October, 2010 Its not my place it' my sisters, just seeking advice at the moment
Weston Super Saint Posted 28 October, 2010 Posted 28 October, 2010 As above. Mortgage company needs to be informed, and kept informed.... I had to pay £100 and this needs renewing every three years with my mortgage co. [i haven't renewed it in the past three years though and they haven't questioned it].
saint_stevo Posted 28 October, 2010 Author Posted 28 October, 2010 other than a larger APR, would there be any extra costs to change over to a B-T-L mortgage?
Weston Super Saint Posted 28 October, 2010 Posted 28 October, 2010 other than a larger APR, would there be any extra costs to change over to a B-T-L mortgage? I recently visited the mortgage advisor. About 18 months ago you could have had the whole lot done on a buy to let for £500 - solicitors, fees etc etc. Now they want about £3k to do the same job! If you have a decent rate on your current mortgage, it is well worth the hassle keeping the residential one and paying them £100 or so to allow you to let it.
thesaint sfc Posted 28 October, 2010 Posted 28 October, 2010 Didn't realise this either - handy to know. I've just dropped my mortgage advisor and email as I discussed all this with him and he never mentioned it.
Jimmy Gabriel's Halo Posted 28 October, 2010 Posted 28 October, 2010 If you don't inform them, technically, you have committed mortgage fraud which could cause problems for you down the line. As a surveyor/valuer I quite frequently come across this situation where people have a tenant but have not informed the lender. Do not do it. Somehow, they will find out - particularly if I have to value your property for a remortgage application. I know the signs and was not born yesterday....!!
hamster Posted 28 October, 2010 Posted 28 October, 2010 pay your monthlies and lender will not give a fiddler's fart imo. risky letting to 'mates' or relatives but then again we're living in a recession and cash is king mate. i am not ifa registered my advice is both free and impartial.
Jimmy Gabriel's Halo Posted 28 October, 2010 Posted 28 October, 2010 ]pay your monthlies and lender will not give a fiddler's fart imo.[/b]risky letting to 'mates' or relatives but then again we're living in a recession and cash is king mate. i am not ifa registered my advice is both free and impartial. Absolutely NOT true my rodent like friend. As I stated above it is mortgage fraud and you could find yourself blacklisted from obtaining any mortage from any other lender. Do not do it.
hamster Posted 28 October, 2010 Posted 28 October, 2010 /\ okay. s-s dont do it, even though it may save you lots of money in these cash strapped times, it may lead to you being labelled a politician, sorry fraudster. I will however go on record as saying that imho a little bit of creativity may be called for, it's a game and the people at the very top are role models in creativity.
Jonnyboy Posted 28 October, 2010 Posted 28 October, 2010 If you don't inform them' date=' technically, you have committed mortgage fraud which could cause problems for you down the line. As a surveyor/valuer I quite frequently come across this situation where people have a tenant but have not informed the lender. Do not do it. Somehow, they will find out - particularly if I have to value your property for a remortgage application. I know the signs and was not born yesterday....!![/quote'] what if you are just letting out one room to a friend for under the 4k limit pa?
saint_stevo Posted 29 October, 2010 Author Posted 29 October, 2010 it seems to me its a bit like file-sharing..... you shouldn't do it, but everyone does
SO16_Saint Posted 29 October, 2010 Posted 29 October, 2010 it seems to me its a bit like file-sharing..... you shouldn't do it, but everyone does nail on the head. As others have said, technically it's mortgage fraud. most lenders will give you a Global Consent to Let which is their authority for you (your sister) to let the property out. Some lenders will charge you an admin fee (NatWest) amd very few will decline the request.
Jimmy Gabriel's Halo Posted 29 October, 2010 Posted 29 October, 2010 what if you are just letting out one room to a friend for under the 4k limit pa? Pretty much the same situation. Any lender will want to know if anyone other than you, over the age of 16 (I think) , the borrower is occupying the property so that a disclaimer can be signed by your lodger stating thay will have no legal claim in terms of occupation of the property should you default on the loan. This therefore ensures the property can be sold with vacant possession should it be necessary to repossess. Trust that helps.
Jonnyboy Posted 29 October, 2010 Posted 29 October, 2010 Pretty much the same situation. Any lender will want to know if anyone other than you' date=' over the age of 16 (I think) , the borrower is occupying the property so that a disclaimer can be signed by your lodger stating thay will have no legal claim in terms of occupation of the property should you default on the loan. This therefore ensures the property can be sold with vacant possession should it be necessary to repossess. Trust that helps.[/quote'] thats alright. aint no sucker repossessing me
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