Buying an apartment,want to "let" out a room. Who needs to give permission?

ottie

Dear All,

I am currently in the process of buying a 2 bedroom apartment, and perhaps when i have got settled in ( 6 months or so time) , i would like to consider my friend letting the other bedroom and chipping in with some rent / expenses.

I believe I am right in saying that I would have to get permission off my mortgage company to do this? (The small print implies it) - is this other peoples experience and do i need to approach any others?

Can anybody advise me, if these procedures are a matter of formality to be accepted by a mortgage company etc , or are there serious concerns that a mortgage company would have in me letting out a room.

I would get it all drawn up with a solicitor etc.

Thanks as always for advice.

xHannahx

The mortgage company I used to work for weren't bothered by a room being let, as long as the mortgage holder was still in property, as long as it was correctly insured.
Letting the whole property is what the mortgage companies generally don't like. The terms of a residential mortgage is normally that the mortgage holder resides in the property.
You may have to call the money the friend pays you as housekeep rather than rent though.

Rambosmum

We've had lodgers before - we didn't let the mortgage company know formally, I called them, asked if they needed to know and they said that as long as the owners were there it was fine.

Under the rent a room scheme you can charge up to about £350 a month tax free, more than that and you'll have to declare the income to HMRC.

I strongly recommend a lodger agreement though, rather than doing it informally - they are easy to come by on the internet.

macman

A lodger is no concern to the mortgage provider. A tenant is. They are two very different things.

Rambosmum

macman wrote: »

A lodger is no concern to the mortgage provider. A tenant is. They are two very different things.

Our mortgage stated that if anyone other than the mortgagee's or their dependents were living in the property (with or without them) they needed to be informed, in reality though it made no difference and I have done what the mortgage T&Cs state.

gazter

The freeholders might get a stick up their bum and make references to not being able to sublet or some such thing that might be in your lease. As you arent subletting kindly tell them to bug off.

macman

I didn't say that the mortgage provider didn't need to be informed, just that they are unlikely to object to a lodger, as opposed to a tenant. A lodger has no rights to possession-a tenant does.

Annie1960

You will also wish to let your insurance company know.
If you are getting the single occupier discount for council tax, you should also let the council know.