House question

Feelingfoolish_3

Hi again

I havent decided what I am doing with my house yet, pretty sure it is negative equity but will get valuations next week, if for some miracle it has equity then the OR will want it or let a family member buy the equity.

If I do lose the house then I am fortunute to be able to rent from a family member but the rent will be higher than my mortgage. My mortgage is £460 pm on interest only but the rent will be £550-£600. Do you think the OR would agree to this?

Thanks (almost ready to include a smiley!)

Bethankim

as long as the rent is within the average for your area then the OR should be fine. If the average was say £350 and your rent was considerably higher then the OR can make you find somewhere cheaper. although £550 is average here in sunny (:D:D) nottingham for a 3 bed house

skylight

It will be fine as long as the rental is comparable to other properties in the area. Now the OR will not compare a 2-bed flat in the best area of town to a 2-bed in the scumiest part if that is not where you live. You can also back up comparables yourself from places like rightmove etc.

Most ORs don't really question the rents as long as they seem fair. And if they dont like it, then they will just refuse to allow you to include the entire cost in your SOA, so you would either have to find the balance from your surplus or move.

skylight

Oh - and one more thing - renting from a family member. It needs to be a legal, correct business arrangement too. If in the future you need to claim LHA from the council to help cover the rent, they will not cover it unless it is a business arrangement and the OR may not look kindly on it too.

Make sure that its above board in the correct way, you have tenancy agreements and any deposit is kept in a holding fund thingie (see more on the renting board) and so on.

Feelingfoolish_3

thanks guys, I particularly like the holding fund thingie!! Ive not looked at rentals here but know a 1 bed flat above a boozy shop is 350 but will look around