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Renting loophole?
Fireflyaway
Posts: 2,766 Forumite
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.
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.
0
Comments
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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)0 -
why do you want to keep it?
what could it sell for?
what rent can you get?0 -
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 planChanging the world, one sarcastic comment at a time.0
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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" - Confucius0 -
think of it another way - your tenant could run up HUGE bills in your name and you would be liable0
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have you considered a let to buy mortgage?0
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