Looking to let home..in need of advice!!

Jennym

Hi,

I have just registered on this site and I am need of advice!

I (prematurely!) bought my first home in 2007, and now only 18 months down line would like to get rid either by selling or letting it out. I have contacted my lender and I am in negative equity and also have a £5000 penalty charge to pay if I wish to sell, so I am presently assuming this is not an option.
So, I would like to let it out as soon as possible. I am looking to go travelling and would like to let it out minimum of 6 months and then longer if tenants want to stay etc...

Do I have to contact my mortgage lender to get permission to let? and if so is there anything I can do if they say I cant let out the property?

Can I let it out privately without consulting them I am doing this? Is there any way they could find out?

Also, do I have to declare to Inland Rev and pay tax? Please help!

Thanks

Jen x

poppysarah

Yes you need permission off your lender.

Start with them.

Jennym

Thanks,

What if they say no? Is there no way of doing it?

Will they say no because of negative equity in the house?

poppysarah

They might say no. Until you ask you won't know. They may want to know how much rent you can get and if it covers the mortgage and your insurance costs and the safety certs and epc you need.

Pee

Letting it and then going travelling is likely to be a difficult option.

If they say no, then you cannot let it, but I am not sure that they would say no. I have no particular experience of this, but I imagine they do not want you selling with the negative equity and presumably going bankrupt leaving the money and the redemption penalty owing, so they would rather take the risk of a tenant failing to pay rent and damaging the property.

princessamy86

If they say no you could try moving your mortgage to a different lender who would let you rent it out, however you might end up paying a higher interest rate and there might be a penalty from your original company for ending the agreement early. Yes you do have to contact the inland revenue as it would count as another source of income-they will advise you how much tax you will need to pay. Trust me-your mortgage company will find out somehow and then you could be in serious trouble for mortgage fraud!

Jennym

Thanks very much for your advice. I will contact my lender and see what they have to say. If they say no I will be gutted because I will be letting go a chance of a lifetime! All I can do is try.

I might look into a mortgage payment holiday!