what happens if you inform santander youre renting the property?

G_M

Moneymaid wrote: »

I have landlord insurance for the property good but im wondering if this is all worth it and I might be better trying to sell it.probobly ....

Also I worked abroad for 2 years in a taxfree country irrelevant - the (rental) income was generated in the UK so I dont know if this would affect any tax issues. Ive been back in blighty for 7months and employed for 5 only and any money I get for my rent doesnt cover my whole mortgage or take me to the next tax bracket. Does any of this matter ?

By law, if you let a property you must complete a Self-Assessment tax return.

From what you say, it is likely you will not actually have tax to pay (I can't be sure!), but by not completing the Return you risk a fine AND may miss the opportunity to claim all the allowances, resulting in a tax bill.

Read HMRC advice here.

Read more on letting here.

00ec25

whitewing wrote: »

*Wanders into the thread to be nosy*

you'd better wander out then cos your understanding of CGT is so rubbish I'd write a tome if I tried to educate you

olly300

Firstly you have to phone Santander up to see what products they have. They will understand whether you say re-mortgage or retention product.

If you stay with the same lender they won't do a revaluation unless you ask them because you have done some improvements which were flagged up when you brought the property.

Secondly depending on the area they will give you consent to let.

In theory you can rent out your property without it and Santander have the right if they found out to withdraw the mortgage which would force you to sell. In practice they have to treat you fairly so depending how and why they found out for example the tenants reporting you to Santander they would have to treat you appropriately.

jonewer

HappyMJ wrote: »

Avoiding tax? I really doubt there would be much to pay and what's that got to do with the bank?

Sorry I meant evading tax. Which might not have anything to do with the bank but is illegal.

kingstreet

G_M wrote: »

By law, if you let a property you must complete a Self-Assessment tax return.

From what you say, it is likely you will not actually have tax to pay (I can't be sure!), but by not completing the Return you risk a fine AND may miss the opportunity to claim all the allowances, resulting in a tax bill.

Read HMRC advice here.

Read more on letting here.

Ta. I've put a subscribe on that thread.

HappyMJ

jonewer wrote: »

Sorry I meant evading tax. Which might not have anything to do with the bank but is illegal.

Moneymaid never mentioned not telling the HMRC about the rental property so not sure where evading or avoiding tax comes from. The HMRC could do data matching of occupiers registered to vote against the names registered with land registry so it isn't hard for them to find out so I'm sure Moneymaid is filing a tax return each year. If the property has only just been let this year there is no need to fill in a return until January next year so no illegal activity has yet taken place.

gld73

I had a residential mortgage on my home with Santander, then had to move away due to a job change - didn't want to sell the house as it had dropped too much from when I bought at the peak of the market. I asked Santander for Consent to Let, thinking it would be around £295 as that was what a handful of postings on MSE had said at the time (a year or two ago - the same as one posting in this thread though) ... but they quoted me nearer £2k for Consent to Let!! Nothing special about the house, just a mid-terrace one which was let out easily, and the LTV was about 60% so I wasn't very high risk or anything.... so not sure why they wanted so much from me compared to other MSE'ers who'd paid a fraction of that.

So (ignoring most of the other posts and just replying to the original one) I think Santander aren't too keen on providing mortgages for people who are letting (I didn't 'buy to let' but that didn't seem to matter). You might be better looking elsewhere.

Moneymaid

I informed the tax office I was coming back from abroad and they knew I was renting my house while I was away so I havent been evading or avoiding paying tax. I even got a rebate from the rates agency as I was renting it. Its worrying they could slap me with a 2k bill as I just dont have it.

Thrugelmir

HappyMJ wrote: »

It does not affect buildings insurance...as long as the owner has declared to the buildings insurance that it is let but again that has nothing to do with the bank.

An insurer could consider the matter to be an omission of a material fact. Thereby making the policy void. As the property belongs to the lender until such time as the mortgage charge is removed.

G_M

Thrugelmir wrote: »

.... As the property belongs to the lender until such time as the mortgage charge is removed.

It does? So why does the Land Registry Title not list the lender as the owner...?