Renting out a room

loki20

Hi,

We are just about to buy our first flat, and were planning on renting out one of the rooms to a friend. I've looked into the rent a room scheme and that all looks fine, but I was wondering since we won't have a buy to let mortgage, how likely is it that the mortgage company will kick up a fuss?

Our mortgage will be an 80% with NatWest, so we couldn't get a buy to let one. I was wondering if anyone had any experience with this.

Many thanks
M

kingstreet

You take a normal residential mortgage and you need not declare your lodger to the lender.

The rent you receive will not be part of the lender's affordability calculation, so you won't be able to use it to borrow more.

loki20

Thanks, I know that I can't use the lodger to alter the amount of the loan, but I read in a few places that I'd have to let them know. For example an article on landlordzone.co.uk

You're saying that this isn't the case?

Thanks again

M

kingstreet

If you wish to let the property under an Assured Shorthold Tenancy and would not occupy the property at all, you would need to seek consent to let from the lender and consent to sublet from the freeholder of a leasehold property.

Where you will continue to occupy the property and offer a room to a lodger, this has no impact on the lender.

If you are concerned about this, contact your lender for your own peace of mind. Be careful. You could put the same question to three different operators in the same lender call centre and get three different responses. It may be worth putting a written request to them to get a written response.

loki20

Ok, thanks. I think I probably will get in contact with the lender, but it's good to know that it probably won't be an issue. And putting it in writing is a good idea.

Cheers
M

Yorkie1

Do not, under any circumstances, mis-describe the lodger as a tenant - that's likely to get the lender nervous!

You'll probably need to let your insurers know, I think.

loki20

Thanks Yorkie,

That's a really useful point that I'm sure I would have got myself into all sorts of trouble with.