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Renting loophole?

Hi - any advice /comments much appreciated.

We need to move as our flat is too small ( 1 bed). We don't want to sell if we can avoid it but don't qualify for a buy to let mortgage.

Can I rent out a room ( ie the only room !) and get round it that way? If I pay the mortgage and keep my name on the mortgage and utilitites etc and just collect rent for 'the room' could that work? I would also be topping up the shortfall from rent to cover the mortgage payments.

I realise this might be totally daft but any advice from those more knowledgeable would be great, thanks.

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If it is not your main residence / if you don't live there your 'occupant' will be a tenant.

    You'll be a landlord with ALL the related obligations (including complying with the terms of your mortgage).

    See

    New Landlords (information for new or prospective landlords)
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    why do you want to keep it?

    what could it sell for?
    what rent can you get?
  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Your best bet is to apply for Consent to Let on your existing mortgage, they might allow or refuse. I believe this usually lasts for 12 months and may not be extended. So you'd have to make sure you had a long term plan
    Changing the world, one sarcastic comment at a time.
  • kinger101
    kinger101 Posts: 6,682 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Your loophole won't work, and may land you in trouble with your mortgage provider, and invalidate your insurance. As suggested, you can get consent to let (though your interest rate will likely increase).

    But work out whether the responsibility of becoming a landlord, and the amount of income you'd get, make it worthwhile compared too just selling the place.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • Argghhh
    Argghhh Posts: 352 Forumite
    think of it another way - your tenant could run up HUGE bills in your name and you would be liable
  • Guest101
    Guest101 Posts: 15,764 Forumite
    Argghhh wrote: »
    think of it another way - your tenant could run up HUGE bills in your name and you would be liable

    This, but more importantly-

    Flat burns down and insurance invalid
    Lender closes down account and demands full payment
  • have you considered a let to buy mortgage?
This discussion has been closed.
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