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  • FIRST POST
    • M47
    • By M47 12th Jan 18, 1:02 PM
    • 7Posts
    • 0Thanks
    M47
    what should she do?
    • #1
    • 12th Jan 18, 1:02 PM
    what should she do? 12th Jan 18 at 1:02 PM
    Hi guys, I am posting this one on behalf of a one of my best friends.

    So she purchased a house many years ago on a residential mortgage. Over the years her circumstances changed and she had to move away and out of the house. She decided to rent it out and has been doing so for a few years, what she didn't realise until very recently is that her mortgage company did not and will not authorise her renting it out! (I know her and truly believe that it was a genuine mistake) They will not let her change her mortgage type & her credit is very poor at present so she wouldn't be able to remortgage on a buy to let.

    It is not practical for her to move back into the house either as she has her job family and friends are all in London and the property is in Birmingham.

    She cannot afford to just pay the mortgage of an empty house either.

    She has not informed her mortgage company of her mistake in renting it out without their permission, as she is in fear of what the consequences may hold. So she decided that the best way to solve this issue was to sell her house.

    She has had an offer from her current tenant who wants to buy the house and has excepted their offer.

    Now as she was filling out a form sent to her from her conveyancing solicitors who are assisting her in the sale of her house, they asked the question of "if she lives at the property" and if anyone else or any tenants live at the property. Now obviously she doesn't and the potential buyer does.

    If she told the complete truth on this form would this blow her cover to her mortgage company that she was renting her house out without permission? Also her tenant will also have to put down the property address as this is where they live.

    My friend asked me for advice and I do not have a clue on what she should do, so I thought I'd post it on here for you guys to give your thoughts(just for the record she is a lovely and usually a very honest person LOL).
Page 1
    • Caz3121
    • By Caz3121 12th Jan 18, 1:05 PM
    • 10,943 Posts
    • 7,157 Thanks
    Caz3121
    • #2
    • 12th Jan 18, 1:05 PM
    • #2
    • 12th Jan 18, 1:05 PM
    aside from the mortgage company being in the dark, has she been declaring the income for tax purposes and have landlord insurance, annual gas checks etc. How long since she has been away from the property? (potential CGT on sale)
    • Mortgage_Adviser
    • By Mortgage_Adviser 12th Jan 18, 1:09 PM
    • 78 Posts
    • 34 Thanks
    Mortgage_Adviser
    • #3
    • 12th Jan 18, 1:09 PM
    • #3
    • 12th Jan 18, 1:09 PM
    HGow does she knows for sure her current mortagge lender will not give a consent to let?
    • M47
    • By M47 12th Jan 18, 1:10 PM
    • 7 Posts
    • 0 Thanks
    M47
    • #4
    • 12th Jan 18, 1:10 PM
    • #4
    • 12th Jan 18, 1:10 PM
    From what I understand she breaks even and makes little to no profit form the rent
    • M47
    • By M47 12th Jan 18, 1:11 PM
    • 7 Posts
    • 0 Thanks
    M47
    • #5
    • 12th Jan 18, 1:11 PM
    • #5
    • 12th Jan 18, 1:11 PM
    I think she did some research
    • BoGoF
    • By BoGoF 12th Jan 18, 2:36 PM
    • 2,858 Posts
    • 2,106 Thanks
    BoGoF
    • #6
    • 12th Jan 18, 2:36 PM
    • #6
    • 12th Jan 18, 2:36 PM
    From what I understand she breaks even and makes little to no profit form the rent
    Originally posted by M47
    Thats probably because she thinks she can deduct the full mortgage payment for tax purposes.....but she can't.
    • NineDeuce
    • By NineDeuce 12th Jan 18, 3:00 PM
    • 695 Posts
    • 607 Thanks
    NineDeuce
    • #7
    • 12th Jan 18, 3:00 PM
    • #7
    • 12th Jan 18, 3:00 PM
    She should set up a forum account on Money Saving Expert so you can have a free afternoon....
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