Santander consent to let - AirBnB

bc10_2

hello,

My wife and I live in a house where we have some spare rooms and having read our mortgage terms understand that we can let upto 60% of the property providing we live in it throughout and get consent from Santander in advance.

Here's the Q:
My wife is exploring the idea of running an AirBnB style operation to host guests and let rooms out on a check-in / check-out basis. Is this kind of thing allowed under Santander's standard 'consent to let' process? Does anyone have any experience of doing this? I realise that AirBnB (although increasingly popular) is more akin to operating a B&B as opposed to having a lodger.

It would be good to get people's thoughts. Secondary Q is whether converting the mortgage to BTL would work? Although again my concern is whether a B&B style operating via AirBnB would still be allowed under this arrangement. The final option I thought might be feasible is to "let" the 60% of the house out to my wife under 'consent to let' so that she can operate her B&B concept though again I'm not sure if that would constitute a lease and be covered under Santander's Consent to Let. Thanks in advance for thoughts.

BitterAndTwisted

"My wife is exploring the idea of running an AirBnB style operation to host guests and let rooms out on a check-in / check-out basis. Is this kind of thing allowed under Santander's standard 'consent to let' process?"

Why don't you ask them? Sounds to me more like taking in a short-term lodger or two, and that shouldn't affect your residential mortgage as long as you don't give your visitors any rights like a tenant would acquire.


And no, a BTL mortgage would not apply here as you'd still be living in the property.

kingstreet

AirBNB?

New millenium name for short-term lodgers?

Not something many lenders have probably considered. Ask lender and come back and report here so we can tell others.

bc10_2

Hi both,

I intend to raise this with Santander but wanted to get a view of other people's thoughts / experiences as my own views are not yet crystallised. I will not in any case do anything that breaches my mortgage terms as it's silly to do so (eg.invalidated insurance, risk of repossession etc etc).

thanks in advance to those who can share any constructive comments

bc10_2

Hi - yes will definitely have a chat with them and report back.

My biggest concern is that with a lodger they are presumably a tenant so have a tenancy agreement - with AirBnB the guests are more like B&B customers and I want to ensure Santander don't view it as requiring a commercial lease / mortgage and thus invalidate our residential home. We are just a married couple trying to do everything by the books.

kingstreet

Most lenders have a clause in their mortgage T&Cs which requires the mortgagor to inform them of any let and requires permission be sought.

Many do not specifically mention scenarios where the mortgagor will remain in residence, such as taking lodgers of either nature, short term or long.

Have a look at the guide which came with your offer.

bc10_2

Hi Kingstreet-

Already looked through the T&Cs. Conditions are as follows:

1. We must live in the property throughout the mortgage period (happy to do so)
2. We can let up to 60% of the property providing we get written approval in advance

point 2 would indicate ability to take on tenants. Tenants have tenancy agreements. However, someone booking a room for 2 nights via AirBnB would not have a tenancy agreement & therefore not a tenant. Would this mean I'm classified as running a business which invalidates my mortgage. I'm really hoping Santander just say yeah no prob but pay £x or %y extra but wanted to explore how others had dealt with a similar situation

kingstreet

A tenancy agreement covers the whole property and would involve you moving out.

Lodgers reside on a licence, not on a tenancy.

Research on the "rent a room scheme" may be of help in this scenario if you can uncover anything on your lender's attitude to lodgers (not tenants!).

jjlandlord

Lodgers can have either a tenancy or a licence. A tenancy is not required to cover the whole of the property.
However, for lodgers a licence is usually preferrable.

The lender's terms indicate that lodgers are fine: letting part of the property while still living there means taking lodgers.

bc10_2

Hi - thanks JJ. Do you know if there are likely to be any restrictions on being able to put locks on the doors if we have lodgers? I've read elsewhere that lenders can be funny about this

Xbigman

You also need to ask your house insurance provider about this.
And you'll probably need Electric and gas safety certificates.





Darren