starting a cake business from home - mortgage

hollylois

I'm currently interested in setting up my own cake business from home to bring in some extra cash. I've done my food hygiene and now need to get environmental health out. However I was talking to my friend and she said that to set up a business from home I would need to inform my mortgage company and I may have to pay more. At the moment I live with my mum and she pays the mortgage with me paying her rent. Is it true that this will happen? The reason for the cake business is because of the mortgage and we need more income so it could be a real problem if it goes up. I live in Wales if this makes any difference.

Thanks
Holly

bambos

Hi,

I haven't ever heard of this before. I think if you are running a business which involves direct contact with clients then you would need liability insurance but I have never heard anything about informing mortgage companies. Good luck with your business I love cake

Kayalana99

When we brought this house their was a clause saying we can't run a business from it - thats nothing to do with the mortgage company, its just the 'rule' of the area.

That said, don't worry about it. I've been running an eBay business from home as long as your not disturbing the neighbours (they are the only ones who are going to complain) its fine - its more to stop you doing stuff like having vans etc coming to the house all time.

We had a thread a while back where someone neighbour was running a car repair business from his drive so always had cars in and out and he got no where complaining about him

If your worried, you'd need to look at the paper work that came with the house - but if it says your not allowed is that really going to stop you?

lincroft1710

Kayalana99 wrote: »

If your worried, you'd need to look at the paper work that came with the house - but if it says your not allowed is that really going to stop you?

But the OP live with her mother, so if there is a restrictive covenant it will be her mother who will be the one who get the aggro, not her.

Kayalana99

lincroft1710 wrote: »

But the OP live with her mother, so if there is a restrictive covenant it will be her mother who will be the one who get the aggro, not her.

What aggro? Shes baking cakes in her kitchen.

krustylouise

I think she means agro from the mortgage company. OP, if in doubt ask your Mum to consult with the mortgage provider, this is the only way to know for sure. No offence to anyone else who had posted but it's better to hear it from the horses mouth (and even better get written confirmation) rather than take advice from strangers on here. After all it would be your Mum in trouble not the posters on here. Better safe than sorry and all that...

lincroft1710

krustylouise wrote: »

I think she means agro from the mortgage company. OP, if in doubt ask your Mum to consult with the mortgage provider, this is the only way to know for sure. No offence to anyone else who had posted but it's better to hear it from the horses mouth (and even better get written confirmation) rather than take advice from strangers on here. After all it would be your Mum in trouble not the posters on here. Better safe than sorry and all that...

I'm a he not a she, my user name relates to a road I lived on many, many years ago.

It's not just the mortgage provider who could create problems. There was a thread on here a few weeks ago about a tenant who was running a business from a home which had a restrictive covenant. Following a complaint by a neighbour, the landlord was informed by the organisation who had imposed the RC that they were aware of the breach of covenant and were considering taking action.

Kayalana99

lincroft1710 wrote: »

I'm a he not a she, my user name relates to a road I lived on many, many years ago.

It's not just the mortgage provider who could create problems. There was a thread on here a few weeks ago about a tenant who was running a business from a home which had a restrictive covenant. Following a complaint by a neighbour, the landlord was informed by the organisation who had imposed the RC that they were aware of the breach of covenant and were considering taking action.

This is an owned house not an LL, I wouldn't advise running a business without informing LL from a rented accommodation as yes the LL could take action as they have a contract and its their house at end day. (It depends what kind of business it is though!)

My dads been running his business from home for 20 years and never had any trouble. Loads of people have home run businesses, how would people start up if they HAD to get an office to run things like a small eBay business?

IMO just making a fuss out of nothing, if it was a car wash outside it would be a different matter.

lincroft1710

Kayalana99 wrote: »

This is an owned house not an LL, I wouldn't advise running a business without informing LL from a rented accommodation as yes the LL could take action as they have a contract and its their house at end day. (It depends what kind of business it is though!)

My dads been running his business from home for 20 years and never had any trouble. Loads of people have home run businesses, how would people start up if they HAD to get an office to run things like a small eBay business?

IMO just making a fuss out of nothing, if it was a car wash outside it would be a different matter.

Plenty of people do start businesses from business premises but I agree that having an office when you're just selling a few items on eBay is unnecessary. I have absolutely no objection to home run businesses which do not impinge on their neighbours' enjoyment of their homes.

The point of my post was that there are awkward neighbours who just want to make life difficult, but have "right" on their side. The tenant who had the business had no trouble from immediate neighbours, just one busybody who lived several doors away.

hollylois

Thanks everyone for all your advice. Basically in the end my mum rang the mortgage company and it doesn't look good. They basically told me that I need to write to a department in their firm giving them a mini business plan and then they would decide if I could do it or not otherwise I would have take out a commercial mortgage which is to expensive. They basically told me that I wouldn't be able to do it. So now I don't know what to do, really disappointed.

Kayalana99

hollylois wrote: »

Thanks everyone for all your advice. Basically in the end my mum rang the mortgage company and it doesn't look good. They basically told me that I need to write to a department in their firm giving them a mini business plan and then they would decide if I could do it or not otherwise I would have take out a commercial mortgage which is to expensive. They basically told me that I wouldn't be able to do it. So now I don't know what to do, really disappointed.

Right well don't give up, you've rang them and they've given you the option to send a business plan to see if they agree.

Since you've decided to take this route - why not do up the plan? Make it as 'family friendly' as possible - i.e you plan to sell 10 cakes to family and 10 cakes to friends and will just be something you do in your spare time so will only be growing it via word of mouth etc.

You never know they might say its ok because its such a tiny business? I get the impression they say to send the plan to see if you need to change it to a commercial mortgage?

The fact is they aren't going to change or do anything whilst your just enquiring - so why not go on ahead and do what they said.