Owner occupied clause - what does it mean?

After 2 years of flat hunting, I've found the flat of my dreams, I could afford the mortgage and I have saved a big (25%) deposit.

However, the flat must be owner occupied / not let out - as specified in the management agreement, I understand. I haven't seen the agreement / exact wording as I haven't put in an offer. Is this a common clause and, in practice, what does it mean? And if I broke the clause, what actually would happen?

For example, I would take a lodger while I lived there, which I understand would be fine. If I was working abroad for a few months, leaving the lodger there, I think that would probably be ok too. But what if I got a 12-month overseas secondment, which say was then extended by another 12 months? What if there were two different lodgers there? Would keeping my belongings, mail and council tax registration at the address likely be sufficient to satisfy the clause?

Can I ask to see the management contract without having put in an offer?

Thanks in advance

Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    noisla wrote: »
    After 2 years of flat hunting, I've found the flat of my dreams, I could afford the mortgage and I have saved a big (25%) deposit.

    However, the flat must be owner occupied / not let out - as specified in the management agreement, I understand. I haven't seen the agreement / exact wording as I haven't put in an offer. Is this a common clause and, in practice, what does it mean? And if I broke the clause, what actually would happen?

    For example, I would take a lodger while I lived there, which I understand would be fine. If I was working abroad for a few months, leaving the lodger there, I think that would probably be ok too. But what if I got a 12-month overseas secondment, which say was then extended by another 12 months? What if there were two different lodgers there? Would keeping my belongings, mail and council tax registration at the address likely be sufficient to satisfy the clause?

    Can I ask to see the management contract without having put in an offer?

    Thanks in advance

    If you have ANY intentions of renting out the flat then look for a different property.

    No point in trying to get round the rules.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If you went abroad, leaving a lodger in your flat, I think they cease to be a lodger in many instances.
    For them to be a lodger, you have to be in residence .... not fannying about abroad.
  • Jenniefour
    Jenniefour Posts: 1,393 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    This type of clause will be in the lease, and, whilst not common, is not unknown. It means exactly what it says - the flat must be owner occupied and not let out. It is highly likely that the price you are paying reflects this restriction. But if your work takes you abroad and you would want to let the flat then it is not for you. Important clauses like this are usually enforced to the letter which means if an owner were to let out then they leave themselves open to legal action - and in a court of law, the lease would be enforced.
  • noisla
    noisla Posts: 147 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks for the confirmation, as I suspected but good to hear it from others
  • ILW
    ILW Posts: 18,333 Forumite
    sounds like a good thing to me, I have seen what happens to nice blocks when the turn into BTL ghettos.
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