Can you rent a property out without a buy to let mortgage?

jeec_2

If I still live at home (with parents), and have bought a house, can I rent this out to a tennant legally and above board? The mortgage advisor said this is ok, seen as its the only house I own. Could you confirm this for me?

Thanks

Thrugelmir

If you run into difficulties then your credit history will be tarnished. As you will have lied and deceived your lender.

Is it worth the risk?

theartfullodger

I take it you mean you have an ordinary, buying-my-primary-and-private-home mortgage and want to rent it out...

Well you can rent it out without telling the lender.. (you can speed down the M62 at 120mph...) but chances are the lender will find out & either charge you a lot more for not telling them or alternatively repossessing it ..

Given you are thinking of not telling the lender who else were you planning not to tell - HMRC & fiddle your tax?? Insurers - that'll be interesting when the place burns down & they don't pay up?? - EPC - not bothering?? Gas safety cert- no bothering??

Decent landlords don't need that sort of behaviour to give landlords in general a bad name...

A bit radical I know, but a wee suggestion - have you tried being honest & above board??? And maybe get a mortgage adviser who knows what he's talking about (that one can be a bit tough, I know..)

Cheers!

Lodger

tek-monkey

Can you have a lodger with a standard mortgage? Or do they not allow that either?

theartfullodger

Can you have a lodger with a standard mortgage? Or do they not allow that either?

Probably OK but read your mortgage terms.. (and indeed your house insurance terms) and see what they say. £10 says some will be worded OK, some not.

And consider Council Tax if getting single persons CT discount of 25%..

Cheers!

Lodger

tek-monkey

Cheers mate

theartfullodger

My understanding is that if you rent out without the lender's permission the mortgagee (lender) could:
a. sue you;
b. demand damages/compensation;
c. repossess the property;
d. sell the property;

- or a combination of these.

(Source: Another excellent web-site...)

Cheers!

Lodger

LandyAndy

tek-monkey wrote: »

Can you have a lodger with a standard mortgage? Or do they not allow that either?

Ask your lender and ask your insurance provider.

I think there is a strong chance they will be fine about it if you have told them rather than them finding out at a later stage.

jeec_2

OK, now I am extremely confused, but I must make it clear I am in no way trying to do anything illegal. There has been a big misunderstanding between the E.A and myself. They have known my intentions the whole time, and nobody said anything! So ill have to take out the mortgage as i have done then just say my circumstances have changed.

before_hollywood

LandyAndy wrote: »

Ask your lender and ask your insurance provider.

I think there is a strong chance they will be fine about it if you have told them rather than them finding out at a later stage.

this is exactly what i was told as i would have rented my place out if the money and tenents were right

LandyAndy

jeec wrote: »

OK, now I am extremely confused, but I must make it clear I am in no way trying to do anything illegal. There has been a big misunderstanding between the E.A and myself. They have known my intentions the whole time, and nobody said anything! So ill have to take out the mortgage as i have done then just say my circumstances have changed.

I don't think the EA is really involved.

It's between you and your lender/insurer. They both must be told if you intend to let the property and they will almost certainly amend their products accordingly.

As Lodger pointed out you also have some additional legal requirements.

Did you really buy a house to let out without looking into any of this?