Permission from bank for renting! HELP PLEASE

Katie27_2

I am after any advice please.
I live in UK and I rented my house out about 18 months ago without getting permission off my bank. I've heard all kinds of stories that my house could get repossessed and I am now worried sick, but I really want any advice on my next move.
I'm with northern rock and haven't missed a payment, will this go in my favour? Also my house will probably be in negative equity now too. Also would it matter if I am coming to the end of my fixed term contract? Does the reasons behind moving count?

Any advice is welcome

many thanks

RAS

I think people are going to get a bit confused by your post.

Which country are you in? Assuming E&W:

1. Your building and any contents insurance are probably invalid.

2.Do you have a Gas Safety Certificate? If not - sort it tomorrow as this is illegal.

3. Is the deposit registered. If not the tenant can sue you for 3 times the value and the originbal. And you cannot evict them.

4. Have you declared your income to HMRC? If not, nice fines await you.

silvercar

RAS wrote: »

I think people are going to get a bit confused by your post.

Which country are you in? Assuming E&W:

1. Your building and any contents insurance are probably invalid.You need landlord insurance that also registers the interests of the lender. Try directLineForBusiness.

2.Do you have a Gas Safety Certificate? If not - sort it tomorrow as this is illegal.agreed

3. Is the deposit registered. If not the tenant can sue you for 3 times the value and the originbal. And you cannot evict them.agreed

4. Have you declared your income to HMRC? If not, nice fines await you.fines l=only await those that have made an undeclared profit.

For tax advice, see here:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013376

Worth declaring because you can carry forward any losses you make to following tax years.

Orpheo

My sympathy is with your tenant(s).

Katie27_2

Yes I have Gas safety Certificate, insurance etc. Just wondering now what is the worse thing that ca happen.

Thanks

de1amo

who is poping out of the woodwork to catch you-you have probably made a loss on the let so there would be no tax to pay--i would just start doing it properly from now if it worries you!

scottishblondie

de1amo wrote: »

who is poping out of the woodwork to catch you-you have probably made a loss on the let so there would be no tax to pay--i would just start doing it properly from now if it worries you!

Even if the OP isn't in profit on the rental income there could well still be tax to pay.

Worst that could happen in terms of the mortgage is the bank find out you're breaching their T&Cs and say they want their money back. The reasons behind the move are unlikely to sway them.

If you are looking to remortgage after your fixed term ends then you may find problems - you cannot get a residential mortgage on a property that is currently let out, to try and do so would constitute fraud AFAIK. You will need a BTL mortgage, but with negative equity you are unlikely to find any.

de1amo

İf the op feels that the Gods in hell will cruxify her then she can do a self assement of her own and then declare! if she cant sleep at night!

Thrugelmir

silvercar wrote: »

4. Have you declared your income to HMRC? If not, nice fines await you.fines l=only await those that have made an undeclared profit.

Not necessarily. Fines can be imposed for failure to file self assessment tax returns on time. Irrespective of any tax liability.

Failure to file a tax return will trigger an automatic fine of £100 (regardless of whether you are claiming a tax refund) and, if the tax return is:
over three months late - a daily penalty will apply
over six months late - an additional £300 or five per cent of the tax due if this is higher
over twelve months late - a further £300 or a further five per cent of the tax due if this is higher