We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Rent a Room Scheme in Leasehold Flat.

Options
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

Comments

  • TEDDYRUKSPIN
    TEDDYRUKSPIN Posts: 1,528 Forumite
    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.
    Motto: 'If you don't ask, you don't get!!'

    Remember to say thank you to people who help you out!

    Also, thank you to people who help me out.
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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
    ben1985 Posts: 115 Forumite
    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
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.