Would this make me a landlord?

hazyjo

It's not really an investment if you're getting nothing from it - and please don't forget you're paying a lot of interest on that money! Tens of thousands I expect over however many years the mortgage is.


Jx

JimmyTheWig

hazyjo wrote: »

It's not really an investment if you're getting nothing from it - and please don't forget you're paying a lot of interest on that money!

It is an investment if house price inflation outstrips the costs (mortgage interest, missed interest on equity, running costs) of keeping it.

EastLondonChick

Hi try contacting your existing lender and asking for a consent to lease. This is a letter confirming you can rent out your property under your existing mortgage.. I did this with Nat West about 3 years ago and it cost £100. I understand some lenders may want to increase the interest rate. At the time NatWest did not and they didn't do credit checks as part of the process. Hope this helps

G_M

This is not about whether or not you will be a l'andlord'. It is about whether you will be in breach of your mortgage agreement.

Here is a typical agreement (Halifax):

You agree to the following.
• You must use your property as your
only or main home unless we agree
otherwise.

carefullycautious

If you just allow someone to live there without a proper contract you would run the risk of them never leaving.


Life time tenants comes to mind?

Foxy-Stoat_3

EastLondonChick wrote: »

Hi try contacting your existing lender and asking for a consent to lease. This is a letter confirming you can rent out your property under your existing mortgage.. I did this with Nat West about 3 years ago and it cost £100. I understand some lenders may want to increase the interest rate. At the time NatWest did not and they didn't do credit checks as part of the process. Hope this helps

They have tried but they refused. Probably because the rent isn't going to cover the mortgage.

Fireflyaway

Yes we can afford to pay the rent on a new place and the mortgage here or I would not have considered it as an option.

Our current income is fairly OK so that's not the problem. The credit score is bad because of poor money management in the recent past and our income was not always so good.

I'm hoping a poorish credit score wont hold us back from renting as we have no CCJ's or bankruptcy.

Thanks everyone for the comments and suggestions.

cloo

My bank let me let my house without changing the mortgage after I moved out, although it was a very small mortgage, so they might have been inclined to leniency.

JimmyTheWig

Does anyone know if the following would work for the OP?

Keeps his residential mortgage on the house.
Keeps the house as his main residence.
Rents a house elsewhere as a second home.
Takes in a lodger in the mortgaged house.
Spends most of his time in the rented house but comes back to the mortgaged house from time to time.

Would it be a problem getting (contents) insurance on the rented house as it is his second home?
Would it be a problem anywhere (mortgage, insurance, anything else) with him spending more time at his second home than his first home?
Any other problems?

wolfplayer

JimmyTheWig wrote: »

Does anyone know if the following would work for the OP?

Keeps his residential mortgage on the house.
Keeps the house as his main residence.
Rents a house elsewhere as a second home.
Takes in a lodger in the mortgaged house.
Spends most of his time in the rented house but comes back to the mortgaged house from time to time.

Would it be a problem getting (contents) insurance on the rented house as it is his second home?
Would it be a problem anywhere (mortgage, insurance, anything else) with him spending more time at his second home than his first home?
Any other problems?

Could be a problem if the lodger claims they are the tenant, perhaps, and under that arrangement you're not going to get as much rent from a lodger anyway.

New levels of ridiculousness on MSE every time I pop in.

I hope the HPC shows you no mercy.