We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Tenancy agreement - mortgage and family related
nzmegs
Posts: 1,055 Forumite
Confusing one....but desperately need good advice.
I have a property in my name that my MIL lives in. She pays nominal rent to cover the small mortgage. But nothing close to the market rent.
We are remortging our own property that we live in. the remortgage company (virgin) want to know the details of the BTL (where the MIL lives) including a tenancy agreement stating the rent paid.
We don't have a tenancy agreement as it is a family member. But i can arrange to have one done. But obviously, we make no income from the property and do not want to put the incorrect inflated market rent on the tenancy agreement. But it seems that the bank want to know we are getting market rent for it.
What should we do? we won't get the remortgage unless we show a tenancy agreement. but we shouldn't lie about how much we get - should we?
Incidentally, we have had both properties for more than 10 years and never defaulted and always paid the rent/mortgage with no problems.
We only want to add £10,000 to our current mortgage and our repayments will be lower than our current ones.
I will also post this on the mortgage section.
I have a property in my name that my MIL lives in. She pays nominal rent to cover the small mortgage. But nothing close to the market rent.
We are remortging our own property that we live in. the remortgage company (virgin) want to know the details of the BTL (where the MIL lives) including a tenancy agreement stating the rent paid.
We don't have a tenancy agreement as it is a family member. But i can arrange to have one done. But obviously, we make no income from the property and do not want to put the incorrect inflated market rent on the tenancy agreement. But it seems that the bank want to know we are getting market rent for it.
What should we do? we won't get the remortgage unless we show a tenancy agreement. but we shouldn't lie about how much we get - should we?
Incidentally, we have had both properties for more than 10 years and never defaulted and always paid the rent/mortgage with no problems.
We only want to add £10,000 to our current mortgage and our repayments will be lower than our current ones.
I will also post this on the mortgage section.
0
Comments
-
I am presuming you took out the Buy to Let mortgage with Virgin.
They have different criteria when renting to a family member.
https://intermediaries.virginmoney.com/virgin/assets/pdf/lending_policy_criteria.pdf
page 15
Telephone and explain that a family member is renting the property.0 -
The BTL is actually with another bank - I have asked the mortgage broker to explain the situation. Have decided to just give them a tenancy agreement stating the rent that is actually paid as I refuse to lie about it.
Hopefully they will be sensible about it.0 -
The mortgage company will almost certainly require historical bank statements to corroborate the tenancy agreement and prove rental income so there's no point in putting anything other than what you actually receive.
0 -
The BTL is actually with another bank - I have asked the mortgage broker to explain the situation. Have decided to just give them a tenancy agreement stating the rent that is actually paid as I refuse to lie about it.
Hopefully they will be sensible about it.
Since it isn't with Virgin then google for the mortgage lenders terms and conditions for Buy to Let0 -
I don't see the quandry.
You let a property and receive rent. So you tell the bank what rent you receive, in the same way that you tell HMRC.
My surprise relates to the BTL morgage lender, as they generally prohibit leting to family - but that's a different issue.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards