buy to let mortgage and renting to family

td

do buy to let lenders check tenancy agreements to see that you're not lending to family?

Specifically POst Office

thanks

mlz1413

Have you read the Terms & Conditions?

td

hi,

thanks for your reply. Yes, it doesn't state that they do look, nor does it say that they don't. It's not definite we will rent to family, though if we can't find a tenant any other way then a family member would rent it, I'm just trying to cover all bases really.

td

G_M

How much are you planning to lend to the family? Are you planning to actually buy a house or just pretend to, get the mortgage money, and then give it to the family?
Unlikely to work as the bank's solicitors will require the house to be registered with the LR.

td

No - not dodgy in any way - we are buying a house to rent out, if we can't get a tenant we would put one of our relatives in their as they rent anyway and it would seem silly us having a emptyplace and them paying a different landlordrent. We would have a full tenancy agreement, market value rent - they would basically get the same deal as any other tenant.

G_M

Ah. I see. Don't understand the problem though. Your 'family' would just be a normal tenant. Whatever conditions the lender applies to tenants would apply to your family. Lenders sometimes do not allow letting to DSS claimants for example, or insist you use one of the tenant vetting services. But the fact that the 'tenant' is related is irrelevant, unless they claim DSS, fail the vetting process etc

Personally though, I would never let to family. What if they get made redundant and can't pay the rent. VERY hard to evict your mum, sister, or whoever, yet you still have a mortgage to pay......

But that's a matter of personal choice.

mlz1413

If the T&C's do not say that mortgage co needs advising of particular groups, ie students, family, benefit claimants then you should be fine, ensure the T&C's haven't worded a clause the other around though.

If your not sure then ask.

td

Ah - I'm sorry I misunderstood I thought youmeant whether they would check the tenancy agreement.

No the t&c def say no to renting to family.

theartfullodger

No the t&c def say no to renting to family.

Sigh!

So, which part of "No" didn't you understand?? If you don't plan to stick to your side of the bargain (contract, mortgage agreement) by renting to family does that mean it's OK for the Lender not to stick to his side (eg increase the interest rate??)??

Cheers!

Lodger

td

There are polite ways of answering, even to what you may think is a stupid question.

td

G_M - the relative we would may put in the house is disabled and gets their rent paid anyway, the reason he would want to move into the house is that he never goes upstairs in the house he's in cos stairs are too hard and the house we've got is a bungalow. It would all be above board and official - deposit and tenancy agreement just as I would do with any other tenant. Is family classed as immediate family - borthers, sisters and parents?

thanks