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Becoming Landlord to my sister
Wanno
Posts: 130 Forumite
Does anyone know if there would eb a problem with me buying a two bed room house and having my sister as one fo the tenants?
Are there any tax implication or other problems apart from the obvious relationship stuff?
Are there any tax implication or other problems apart from the obvious relationship stuff?
0
Comments
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there are any tax implications to worry about.
HOWEVER and this is a big however, I would ensure that every to do with the tenancy is done as it would be done with a complete stranger (ok you may relax the references bit!) and make her aware that conditions that would apply to a complete stranger also apply to her.2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0 -
Not sure that mortgage companies are happy for the tenant to be related to you.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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can't think of a lender who would allow you to let to a relative.0
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Who will pay your sisters rent? If it is met by housing benefit then the council will stop paying it as under the terms of the benefit they do not permit someone receiving housing benefit to rent a property from a relative0
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Madjock wrote:can't think of a lender who would allow you to let to a relative.
There's no problem with letting to a relative providing you pick a lender that knows what they are doing and most importantly you set up an Assured Shorthold Tenancy. The lender will simply be looking that they can evict your sister should the need be and provided there is an AST in place there will be no problem.0 -
My mate/boss at work rents to his sister-in-law but and its a big BUT I'm pretty sure the bank don't know its a relative.
The earlier reply seems to get to the main point - the lender just want to know that they can repossess your house if need be. and of course charge you extras as you are renting out your property.0 -
Zammo wrote:There will only be a problem if you embark on some inclandestine relationship with her and have a six toed div-kid.
:money:
Goodness me! I hadn't thought of this- maybe I shuold consider it! Oh yes we are both female so I hope that wont happen.
Thanks for the advice people. I think I will have to check with the banks and see whether it is do-able!0
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