Risks (esp around letting without consent)

CFC

Squirrel1980 wrote: »

Thankyou very much for all of your replies. This has been incredibly useful.







Yes, I really hadn't thought of this. And like you say, so long as I'm 'living there' i can stay with my parents as much as I like. The only drawback being having to pay for half the bills for services I'm barely using.

Exactly so. You could be there for one day a week or one day a fortnight - providing the utilities are in your name and there is a room that is reserved for your use you are living there. And you can make an arrangement with the lodger that in fact they are responsible for three quarters of the bills (except council tax of course) as you will not be there more than one quarter of the time or build that into the total rent. Have key meters fitted for gas and electric. Remove the phone line, if they want one they must pay to have one of their own.

Ulfar

pwg_blt wrote: »

Ulfar,
As I already stated: ethics was not included in my answer.
To scare the poster using the HRMC link up to detect mortgage fraud is incorrect. The link up is to verify income for new applications, not detect people renting out their home.
Lender's don't re-search CRA for no reason, they only upload account information. You generally only give them consent to "share" your information, not re-search at their will anytime.
If we are discussing the realistic threat of detection, which I believed we were, then please explain why my advice would not work?
Regards,
D B2L

I refer you to http://www.bsa.org.uk/mediacentre/pressmortgage_verification_scheme.htm

It specifically states that the scheme is and I quote "The scheme was announced in the March 2010 budget and has been refined during the pilot period since. Use of the scheme will be limited to cases where lenders reasonably suspect, following their own rigorous checks, that mortgage fraud may be taking place."

Now the OP has asked for all the outcomes including the worst. HMRC aren't only being asked to verify income data. If you look at what the banks building societies provide to HMRC to confirm it also includes other data such as addresses. While the OP may have a redirection for his mail for his post, HMRC will have his correct address for Tax and NI.

It helps to be aware of all the facts even if you don't like them and yes it is still breaching the terms of your mortgage.

Mallotum_X

Another vote for moving into the small room and spending some time at your parents.

Good luck with whatever you decide.

theartfullodger

pwg_blt wrote: »

................

The reality is the only way your mortgagee will find out is if:
a) someone tells them - this requires a fair amount of spite as they would need to carry out land reg search to ascertain who your lender is followed by the will to contact them and spill the beans.
b) you get repossessed and on receiving consent to access the property, the tenants contest access and mortgagee finds out you were renting.
c) you change your address with your bank, council, etc and the mortgagee carries out a credit search without your approval and realises you have another linked address.
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Sigh!!!

The lenders aren't that stupid & the credit-rating agencies are cleverer than you may think - eg...
http://www.experian.co.uk/consumer-information/mover-alerts-information.html

They'll know if new names move into your address and start opening accounts for (eg bank, 'phone, electric, gas, water, council tax,,,..) It does not take much brain power (or tiny computer..) to work out what's happened...

Surely the decent, British thing to do is be honest and decent & stick to your contract (with the lender where you agreed to tell him..). Or don't be surprised if the tenant doesn't stick to his contact (with you..) eg doesn't pay, wrecks the place etc....

What goes around comes around laddie!!!

SuzieSue

Mallotum_X wrote: »

Another vote for moving into the small room and spending some time at your parents.

Good luck with whatever you decide.

Agreed, you could even rent the larger room out to the couple who are interested in renting your flat for a reduced rent. But note GM's points:

Please investigate carefully the distinction between lodgers and tenants if you decide on the "stay at parents mostly" approach.

The flat MUST remain your main residence for the occupiers to remain lodgers. So no, you cannot stay with my parents as much as I like. And the council tax and bills must remain in your name. The cost of utilities would need to be included in rent and you must hope the lodgers don't rack up huge bills. Think about it - in a genuine lodger scenario, you, the landlord would be living there, handling the bills etc, and letting a lodger stay with

Yes, by all means go visit your parents, stay over with your girl/boyfriend, go off on a holiday, but the flat is your home.

As soon as you put utilities in their name, stop sleeping there regularly etc you are back to creating a tenancy. you.

Mallotum_X

theartfullodger wrote: »

Sigh!!!

The lenders aren't that stupid & the credit-rating agencies are cleverer than you may think - eg...
http://www.experian.co.uk/consumer-information/mover-alerts-information.html

They'll know if new names move into your address and start opening accounts for (eg bank, 'phone, electric, gas, water, council tax,,,..) It does not take much brain power (or tiny computer..) to work out what's happened...

Surely the decent, British thing to do is be honest and decent & stick to your contract (with the lender where you agreed to tell him..). Or don't be surprised if the tenant doesn't stick to his contact (with you..) eg doesn't pay, wrecks the place etc....

What goes around comes around laddie!!!

Oh dear. So what would you actually do in the OP's position?
Sitting back and allowing the place to fall further into neg equity with ever increasing other bills? Yep good plan, head in sand.

Or as the OP is doing is asking the questions to see what can be suggested.


As SuzieSue says to keep them as lodgers then you must stick to the rules on this, but you can store things back at your parents, i.e if you move into the smaller room then put your summer things at your parents over winter, and winter clothes at their home in summer. Make life easier, and have the occasional night away for a break but not all the time.

SuzieSue

Mallotum_X wrote: »

As SuzieSue says to keep them as lodgers then you must stick to the rules on this, but you can store things back at your parents, i.e if you move into the smaller room then put your summer things at your parents over winter, and winter clothes at their home in summer. Make life easier, and have the occasional night away for a break but not all the time.

And you also need to ensure you spend enough time there to satisfy your insurance company which is probably more important than satisfying your lender. If your lodgers burn your flat down and the insurance company speaks to your neighbours and finds out that you haven't been living there you won't be covered.

theartfullodger

Mallotum_X wrote: »

Oh dear. So what would you actually do in the OP's position?
Sitting back and allowing the place to fall further into neg equity with ever increasing other bills? Yep good plan, head in sand.

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Fair point, apologies.. OP to declare themselves bankrupt, start again with clean sheet.

Cheers!