Can my mum live in my flat if she is not paying rent?

RJD0404

Hi,

desperately looking for some advice. We are just about to move out of our flat and were going to change to a buy to let mortgage. however, my mum has now just sold her flat and need somewhere to live for a few months. does anyone know if she can live in my flat (not paying rent) without breaking any of the rules?

thanks

Leon_W

You're fine. I can't see any "rules" being broken here.

Wh05apk

Leon_W wrote: »

You're fine. I can't see any "rules" being broken here.

I hope you are not being serious with this comment?


All BTL mortgages will have a condition that the properties are not let to close family members, otherwise the mortgage becomes regulated, which a BTL mortgage is not.


So no your mother would not be allowed to rent the flat from you (even rent free) unless the BTL was regulated.

JessicAhh

were going to change to a buy to let mortgage

i.e. You haven't changed to a BTL yet?

As long as you don't change it to a BTL before you're ready to rent to someone who isn't close family, you should be fine. (Unless you have any weird Ts and Cs on your mortgage about who is allowed to live in the house, and for how long)

xylophone

All BTL mortgages

We are just about to move out of our flat and were going to change to a buy to let mortgage. however, my mum has now just sold her flat and need somewhere to live for a few months.

It would seem that the OP is going to stick with her existing owner/occupier mortgage on the flat but will be living elsewhere while her mother "flat sits" for a short while?

Leon_W

Who said they have a BTL mortgage.?? Read the post again Wh05pk and then ask me again if I'm being serious.

holly_hobby

My advice would be to approach your lender to obtain consent to let permissions (which will save hassel and remortgage fees, although there may be a lender admin fee, and its typically timebound for a period of around 3 yrs as its really designed for accidental landlords, at which point you'll be asked to switch to a buy to let mortgage).

Do you need/have you arranged a new mge for your new home ?

As if you have, and the mge commitment on your flat has been discounted from their affordability assessment (as you have advised it was to be let upon your vacating, so essentially the existing mge commitment covered), then strictly speaking you should advise the new lender of this, given that you will essentially have 2 mge commitments until Mum moves out/starts paying rent, which will obv affect your disposable income and affordability and the original basis of offer, so ideally it should really be disclosed.

If not, and you're not seeking another mortgage, then I would just go for CTL permissions (subject to lender criteria re rental income etc), with mum temporarily residing there shouldn't be an issue (as the underlying mge was originally assessed on your income in any event, just as a regualted BTL mortgage is, so I can't see a problem for a temp arrangement, but it all depends on the lender).

Your lender will of course guide, and its them I would give a call to to discuss in the first instance whether they will permit consent to let.

Hope this helps

Holly x