Conset to Let if not charging rent?

zebedee78

Hopefully a fairly straightforward question, but a search doesn't seem to have turned up anything.

If I move out and let my sister live in my flat rent free do I need consent to let from my mortgage lender?

It seems possible that as she wouldn't be paying rent there's no contract, hence no tenancy, hence no requirement for consent. But it also seems unlikely to be quite that simple!

Any thoughts?

Leon_W

It is that simple.

No consent needed.

Simon_gloster

That mortgage you have will be taken into account on your new home.

mrginge

Isn't it more about you having a mortgage with terms stating your occupancy of the property?

The fact that you are no longer living there is the pertinent issue, not the rent amount (or not) of any agreement between you and a third party.

Pure speculation on my part.

holly_hobby

Yep, the t&cs and blds insurance in respect of your residential mge agreement, are based on the property being your residence.

If your sister is in effect a lodger, and you are only ever TEMPORARILY away from home (ie you intend and do return when possible), that may go someway to circumvent the issue (as permission for lodgers isn't reqd from lender as they don't have a tenancy agreement) and as the property also remains your main residence, you've not breached your mge or blds ins t&cs.

If of course you do move out permanently, then yes it would be an idea to advise your lender and confer with your bld/contents insurer just to be sure that you'll be covered in the event of a claim whilst you are absent, although the property is occupied.

The issue with consent to let (letting under an AST) is that the payment of rent gives the individual residency rights, and its all to do with gaining vacant possession upon any default (plus of course the added exposure that you may not continue to svc the mge if the property is no longer your primary residence, which would may be an issue to the lender whether you charge rent of not to be honest).

Clear as mud I know ... !

Hope this helps the discussion in any event

Holly x

zebedee78

Thanks for your thoughts everyone. As there doesn't seem to be any concensus, I guess I'll have to find away of getting some idea from the Halifax as to how they would view it, without commiting myself to anything; first stop the precise wording of my mortgage agreement.

And, just to clarify the scenario, I'd definitely be moving out permanently prior to my sister moving in, so no chance of of trying class it as a lodger type arrangement sadly. Building's insurance shouldn't be a problem as it's covered as part of the service charge on the flat, and the lease does allow subletting so no problems there either.

Seanymph

We have a mortgage with the Natwest (well my husband does) on his property which his son lives in (my husband lives with me).

he has a residential mortgage, and that was approved, but they do have to hold the information that he isn't resident in the property - my stepson and his girlfriend had to sign documents for the Natwest stating that they would move out if asked and they were not cumulating any interest in the property.

But it wasn't a problem - we just had to inform them, and get the forms signed.

As for 'a way of getting the information from the halifax' why not just ask them? Generally there is a mortgage team who are fairly helpful.