Intention to have a lodger causing problems

dannyb123_2

VIGILANT22 wrote: »

Regardless of whether people think something is anal or not, it doesn't change the legality of matters.
Who do you think the woman on the phone was!?...a cleaner who was just passing by and decided to answer the phone!!

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

"If you're a mortgage payer it's best to check whether taking in a lodger is within your mortgage lender's and insurer's terms and conditions"

You are very badly informed.....another example of a bloke down the pub said....rolls eyes.....

You need to get " down the pub" and get a life

VIGILANT22

[QUOTE=dannyb123;30322865]You need to get " down the pub" and get a life[/QUOTE]

go away and work out how to get that mortgage on 12.5k....:rotfl:

maryjane01

Get a life vigilant.

Ok, you may technically be going against the lenders rules, like I myself am, but if they found out (seriously, who would tell them?), what would they do? If you have always made your mortgage payments on time it would be more hassle than it's worth for them to do any thing. I could not imagine they would terminate your mortgage and force you to make repayment in full just because you got a lodger. If something went to court I can't imagine a court enforcing any extreme punishment because at the end of the day you are doing your best to pay the mortgage.

Insurance on the other hand I would look into, if the house burnt down and your insurance was invalid because you had a lodger then you would be in the poo. My insurance is with Halifax, I can't remember the exact terms from when we took it out 3 years ago, but only £500 of the lodgers stuff is covered and if the lodger rips us off we are not covered. Because of having the lodger and working from home we find it difficult to shop around and price compare to get the absolute cheapest insurance.

And yes, I also J walk.

VIGILANT22

Oh the "smarties" (not..rolls eyes) are out in force tonight....who needs rules/criteria with people llike this......

http://www.halifax.co.uk/insurance/pdfdocuments/halifaxhomepb.pdf
Sec1:33
Change in circumstances
You must tellus within 30 days if you know that: you are going to lease your home to tenants,

sub-tenants or lodgers including any of your relatives; We may re-assess your cover and premiums when we are told about changes in your circumstances.

If you do not tell us about changes, the wrong terms may be quoted, a claim might be rejected or

payment could be reduced. In some circumstances your policy might be invalid.

Lodgers could invalidate home insurance, Halifax warns
http://www.homeinsurance.co.uk/news/2009/Oct/Lodgers-could-invalidate-home-insurance,-Halifax-warns.html

Martyn Foulds, senior claims manager at Halifax Home Ins , said: "Taking in a lodger can often impact on the terms of your cover, and failure to let your insurer know of your changed circumstances could potentially invalidate a future claim."

dannyb123_2

VIGILANT22 wrote: »

Oh the "smarties" (not..rolls eyes) are out in force tonight....who needs rules/criteria with people llike this......

http://www.halifax.co.uk/insurance/pdfdocuments/halifaxhomepb.pdf
Sec1:33
Change in circumstances
You must tellus within 30 days if you know that: you are going to lease your home to tenants,


sub-tenants or lodgers including any of

your relatives; We may re-assess your cover and premiums when we are told about changes in your circumstances.

If

you do not tell us about changes, the wrong terms may be quoted, a claim might be rejected or

payment could be reduced. In some circumstances your policy might be invalid.

Lodgers could invalidate home insurance, Halifax warns

http://www.homeinsurance.co.uk/news/2009/Oct/Lodgers-could-invalidate-home-insurance,-Halifax-warns.html

Martyn Foulds, senior claims manager at Halifax Home Ins , said: "Taking in a lodger can often impact on the terms of your cover, and failure to let your insurer know of your changed circumstances could potentially invalidate a future claim."

Work out how to get a life you SAD G I T !!!!!!!!!!!! www.windupmerchent.co.uk/VIGILANT22

:beer::j:beer::T

diethyl_ether

Well it's nice to see this evolved into a mature discussion.

On the one hand I'd like to save money, but I also want to save myself hassle, so I don't think I'll be purposefully concealing information from my lender.

silvercar

VIGILANT22 was quoting from the Halifax insurance T&C, not the lender's T&C for the mortgage. Completely different conditions would apply. Obviously an insurer would need to know as the risk is greater, whether a lender needs to pre-approve is a different matter. Remember that lodgers have very little rights compared to tenants, so the risk is very much smaller.

VIGILANT22

silvercar wrote: »

VIGILANT22 was quoting from the Halifax insurance T&C, not the lender's T&C for the mortgage. Completely different conditions would apply. Obviously an insurer would need to know as the risk is greater, whether a lender needs to pre-approve is a different matter. Remember that lodgers have very little rights compared to tenants, so the risk is very much smaller.

I was replying to MaryJane who stated she had Halifax insurance and to quote her "Ok, you may technically be going against the lenders rules, like I myself am, but if they found out (seriously, who would tell them?), what would they do? "

The OP has already stated she has spoken to her provider FD and to quote her " The woman on the phone said it would be a breach of contract with them."

The Rent a Room scheme

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

"If you're a mortgage payer it's best to check whether taking in a lodger is within your mortgage lender's and insurer's terms and conditions"

ninky_2

you have to see it from the point of view of the lender and lodger also.

the lender needs to know that if the mortgage defaults they can get vacant possession asap. obviously if there is a lodger this could make the process more tricky / expensive / longwinded.

when i took my mortgage out my OH had to sign papers to say he would basically not make a claim on the property or some such if the mortgage defaulted (as it is in my name but he lives there).

as a lodger you want to know that you have a secure contract with the people who own the property. in this case the property is effectively still 'owned' 50 percent by the lender until the mortgage is paid off. so how can they have a secure tenancy arrangement if the lender doesn't know they are there?

it might seem all a bit jobsworth but lenders don't make these rules up for a laugh.

VIGILANT22

ninky wrote: »

you have to see it from the point of view of the lender and lodger also.

the lender needs to know that if the mortgage defaults they can get vacant possession asap. obviously if there is a lodger this could make the process more tricky / expensive / longwinded.

when i took my mortgage out my OH had to sign papers to say he would basically not make a claim on the property or some such if the mortgage defaulted (as it is in my name but he lives there).

as a lodger you want to know that you have a secure contract with the people who own the property. in this case the property is effectively still 'owned' 50 percent by the lender until the mortgage is paid off. so how can they have a secure tenancy arrangement if the lender doesn't know they are there?

it might seem all a bit jobsworth but lenders don't make these rules up for a laugh.

At last someone who understands!...I cannot believe how people with mortgaged properties think they can do what they like, without the permission of those funding it!..Also why would anyone pay insurance that would be invalidated in the event of a claim if they had not taken permission/declared they had a lodger!...such irresponsible posts on here..