Rent a Room Scheme in Leasehold Flat.

ben1985

Hi there, name's Ben I've got my AIP from Natwest and seem to have found a relatively decent flat. It's in a great area and the flat itself has 2 bedrooms, is very modern and spacious. I've had the viewing a few days ago and spoke to the owner.

Obviously the flat is leasehold, the remaining lease is 109 years and the insurance/maintenance charge is £300 per year which covers all grass cuttings, boiler, electrical and gas check's. The owner mentioned the lease is held by the local authority (Council). This obviously will replace any building insurance I would have normally needed.

I've made an offer which is 8k less than the quoted price but the seller is very keen to sell and the estate agent mentioned that my offer would be strongly considered.

So all in all the questions are, is the length of this lease ok?, as long as my mortgage lender is fine will I be able to take a friend in (lodger) under the rent a room scheme and anybody be affected by this?

Just to add my mortgage lender is Natwest so will 109 years be enough for them?

Regards

Ben

TEDDYRUKSPIN

Lease length is fine.

Rent a room is fine as long as you notify the lender. They will send out a specific form for your lodger to sign as to say they will move out if they ever repossess the house.

minimike2

I used to have a NatWest mortgage and had a lodger on the rent a room scheme in a leasehold house. There was no issues, NatWest were fine - They just need a consent to mortgage to be signed by the tenant, but it must be done in the prescence of a solicitor to explain their rights to them.

The question is more one of what your lease says. It may well forbid sub-letting, or have a clause to suggest you must seek permission from the freeholder in order to sub-let.

ben1985

When is the best time to get my prospective lodger to have their rights explained?

Also, in all of your MSE opinions, do you ASSUME/GUESS that the leasehold will not allow the 'rent a room scheme', anybody in the same situation and what was the result. It will really help me out with my mortgage payments you see and I'm doing my mate a favour as he wants to get out of his dad's house but can't currently because he can't afford a one bedroom flat on his own.

Regards

Ben