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Advice re. NRAM negative equity and letting??!
andiepandie12
Posts: 2 Newbie
Hi,
I am new to this, so please forgive me if i am asking obvious questions!
I am new to this, so please forgive me if i am asking obvious questions!
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Comments
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Are NRAM aware that you are currently letting it out?0
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What's the negative equity on the property?
Is the mortgage interest only?0 -
I'd have a read over your mortgage terms and conditions if I were you. I'm pretty sure you'll find a letting clause in there.andiepandie12 wrote: »They are not. My last broker told me i don't HAVE to tell them, but most people are advised to let them know.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
And what about your insurance? Are you covered if your tenants burn it down?0
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andiepandie12 wrote: »They are not. My last broker told me i don't HAVE to tell them,
Would suggest you don't seek advice from this source again.
Any insurance cover you have on the property is invalid. As insurers do require lenders consent in letting a property.
Increase your mortgage payments. As its the only way that you will get on top of the mortgage debt. Will take time to resolve the issue.0 -
And you're declaring it to the taxman?0
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But you are a landlord so need landlords insurance. If your insurer currently thinks that you are living there but your house gets burned down by a tenant AND your mortgage company are also unaware of the arrangement, then your insurance will be invalid. In that scenario you'd be in a hole for a lot more that £15k.
Cutting corners to save a few quid is madness. If you're gonna be a landlord you should do it properly.0 -
andiepandie12 wrote: »I have adequate property owners insurance in place,
Read the small print. Letting is letting whatever the time frame.0 -
Never assume anything. And you didn't answer the taxman question?0
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andiepandie12 wrote: »My insurance details the tenant and my liabilities if fixtures damage tenants contents etc, so i assume it is appropriate cover.
If you are keeping the letting secret from your mortgage company, the insurance will probably not be vaild. Check the paperwork.0
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