Landlord registration Scotland-buy to let for daughter

adele123_2

Hi,


My dad is in the process of purchasing a property on a buy to let mortgage for me and my boyfriend to live in. There will be a tenancy agreement in place. Does my dad need to register as a landlord with the local authority if he is renting it to family? I realise my boyfriend isn't family, but the tenancy agreement will be between me and my dad, with my name on the contract and stating that two adults will be in the property but that I am responsible for paying the rent.


If he does have to register, is this just a formality? As in, provided he is deemed as 'fit to be a landlord' (from what I can see there would be no reason he wouldn't be) it will be processed, or are there other factors that come into place?


Thanks

theartfullodger

Yes he needs to register etc.. £50k max penalty for not complying with regulations...
https://www.landlordregistrationscotland.gov.uk/Pages/Process.aspx?Command=ShowHomePage
It is - IMHO - fairly easy to apply online and cheap compared to similar schemes in Engerland..

It is up to the council to approve him or not: My opinion or (no offence..) yours that he is "fit 'n proper" is of little importance... Mind you, I passed....

It is HIGHLY UNLIKELY that any B2L mortgage will permit renting to family members. Doing so would risk the place being re-possessed. Getting landlord insurance is also v hard for family-member tenants - but can I think be done (he is getting LL insurance??). For yours & dad's sake make sure he & the broker & mortgage company understand what is going on.

If applying for HB/LHA expect problems with council doubting this is a normal commercial tenancy: He needs to be clear he is charging a normal market rent & will evict you if there are problems or you don't pay.

He would be STRONGLY ADVISED to join SaL
https://www.scottishlandlords.com/
- then do the free (for SaL members) landlord training courses at
http://www.landlordaccreditationscotland.com/
e.g.
http://www.landlordaccreditationscotland.com/Events/SLAN_NewLL_18March15.aspx

I would not have one of my sons as a tenant: I would help them get somewhere else, but rather rent to a stranger: Renting to family is a recipe for disaster & a great way for families to fall out...

Slàinte mhath!

adele123_2

Thanks for the info. I'll make sure he registers if the offer is accepted and pass on the links.


Everything is being done through a broker and he is fully aware of the fact my dad is buying it and renting to me. I am confident he will have made sure that he is looking at mortgage companies who would allow this.


I've had a look at landlord insurance (well known companies Aviva, direct line etc) and their policies state that it must be rented to a family member or an employed or retired tenant, and there must be a tenancy agreement in place. They seem to be ok for our situation, or maybe I'm missing something?

theartfullodger

Broker is a salesman only after his commission. Check the terms of the mortgage - for your sake & dad's.

Pixie5740

Yes I was going to say that going through a broker doesn't mean to say everything is above board. My friend wants to buy a second property to let out and his broker advised him to get a residential mortgage and pretend he was going to live in it. Needless to say when I was looking for recommendations for a mortgage broker I didn't ask this particular friend for his.