empty mortgaged property

mckenzie1

I hold a mortgage for my flat but over past few months have been living with my boyfriend. I am quite happy having my own home for security purposes. However, my mortgage company contacted my recently to check my permanent place of residence etc. I am concerned now that i am doing something illegal, my flat is empty at the moment but i had been considering renting it out as i do not want to sell at this time, I do realise if i was renting it out i would need to get mortgage companys permission but is there a problem with my flat lying empty??

overandout_2

I think it is the insurance company that might have an issue with that? When you buy your home insurance, there's usually a question whether you leave the property unoccupied for more than 30 days? It depends on which one you have selected....

If you have ticked no, then if ever there's any burglary or anything goes wrong with the house, the insurance company might not pay out....

Not sure about the mortgage company....though you are right, if you are planning to rent it out, then you would need to inform them.

olias

The only thing I can think of is that most standard buildings insurances will not give cover if the building is empty for more than 30/60 days (check policy). If the building burns down and is uninsured, the mortgage company will not have a property to hold the mortgage against and will be chasing you for the money!.

I'm not sure whether lenders actually insist on buildings insurance, but I would guess they probably do. Check your buildings insurance policy for what it says about the building being left unoccupied, and the easiest way round it is probably to spend a weekend at your flat every six weeks or so

Olias

Fire_Fox

The only dodgy thing I can think of is how you handle the council tax, if you are living at your BFs he cannot claim single person discount, and you can only claim second home discount on your flat. Councils can and do check so better to be honest.

mckenzie1

Thanks for reply : ) currently i pay council tax for a second home at my flat - i could not get rebate for empty property as it is furnished! and my boyfriend pays full council tax for his property - i am registered at both for council tax purposes.

flaura

surely it will say in your terms and conditions of the mortgage?

i.e. perhaps they are just checking that you are not renting it without their permission.

or perhaps their is a clause in it realting to not living in it for a set number of days.?

poppysarah

Mortgage probably requires it to be your main home.
Council tax won't care as long as it's paid, ditto bills
BUT insurance is almost certainly void and if you had a problem there how would you know?

If you're going to rent it out you'll have to do it properly.