Subletting Primary Residence Conundrums

Boffin123

Hi, I was hoping that I could get a bit of advice. I've an offset mortgage linked with a current savings account with an overdraft limit of around £15,000.
I would like to let out my primary residence. I've got in contact with the mortgage provider and they are sending me the paperwork. On the phone they mentioned something a bit, peculiar. I'm already £2000 overdrawn. Now if the mortgage provider agrees to let me let my flat out then the overdraft limit would drop from £15000 to £1000, but as I'm already overdrawn then it will drop down to my current £2000 level. My question is this - Can I simply withdraw £13000 now plop it in another savings account and THEN send back the paperwork to the mortgage provider as they would then make the overdraft limit £15000 (i.e. not have changed it at all). Would they then be more likely to refuse my letting the property out?

Some related questions on the topic of letting: Would I need to change the type of home insurance that I have? Would I need to give the taxman a slice of the rental earnings? Are there any other major pitfalls in this plan, that I'm currently oblivious to?

Any help would be greatly appreciated.

Cheers

theartfullodger

If you let it out it is no longer your primary residence: But you knew that. So CGT etc applies.. (There are more than 10 taxes a landlord may pay, not just income tax...)

Any landlord who lets without landlord insurance appears less than bright & is taking major risks (place burns down, not covered, you are bankrupt, then sued for 'orrible burns to grandchildren of tenants...)

Yes of course HMRC want their slice:

Start with this, read & understand, then ask any more questions...
http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

Cheers!

Boffin123

Cheers that is extremely helpful
It looks like I've got a fair bit of reading to do!

Thanks again!

agrinnall

One thing to note for any future correspondence here or elsewhere is that you're not subletting, which can only happen if you are already a tenant, you are letting (or you're intending to).