Santander consent to let - AirBnB

Thrugelmir

Sounds as if you would be operating a bed (and breakfast) business. Therefore you would need to comply with everything that goes with same.

gazter

booksurr wrote: »

unless you intend to commit fraud the answer to your question is ask Santander,

the experiences of others will be meaningless without comparing their full T&C on their mortgage to yours since theirs may differ

What fraud would they be committing?

BitterAndTwisted

If you're planning to have paying guests staying for a night or two why do you think you'd need locks on doors? You won't be running a conventional B&B from your home, so you won't need them. "Exclusive occupation" or the appearance of it is the one thing you need to avoid! A lock on your own bedroom door to prevent unauthorised access would be sensible

BitterAndTwisted

gazter wrote: »

What fraud would they be committing?

Mortgage fraud. Applying for a residential mortgage when the intention all along was to use the funds to develop a business.

gazter

bc10 wrote: »

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

I would imagine the worst that would happen is they ask you to stop doing it, even then its unlikely, as you are staying there. The insurances are a different matter, that you do need a definitive answer on if you ever expect them to pay out.

bc10_2

Hi-

My wife would be looking to host paying guests multiple rooms - therefore each guest would probably want a lock on their door for privacy as we could potentially have 2 or 3 complete strangers at any one time. However, each guest would not have "exclusive use" because my wife would enter the room each day to provide fresh linens, change towels, vacuum up etc,

gazter

BitterAndTwisted wrote: »

Mortgage fraud. Applying for a residential mortgage when the intention all along was to use the funds to develop a business.

That doesnt seem to be the case here at all. They are talking about a property they already live in. There is nothing in the original post to suggest that when they bought the house they lied on their mortgage application to their true intents.

There is no scope for fraud, only a *possible* breach of terms and conditions. AirBnb is such a grey area, unless the terms and conditions are very specific, then there is unlikely to be a problem.

gazter

bc10 wrote: »

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

I wouldnt ask them to be honest. If that is all they can be bothered to write, thats their fault.

You are living in the property, and you arent taking on tenants by letting.

bc10_2

Hi Gazter

The problem with not telling the bank is that a) if a guest were to ever burn the building down, my insurance would be invalid if I was in breach of my mortgage terms OR had only a residential insurance. if the bank later did find out they could repossess the house & totally block my ability to refinance elsewhere. Legally, the only real option is to do things through the books.. The terms are just frustratingly ambiguous & unfair (the bank wouldn't care if I threw house parties & potentially impair the value of the house, but the moment one wants to be a bit entrepreneurial the restrictions kick in..)

silvercar

a) if a guest were to ever burn the building down, my insurance would be invalid if I was in breach of my mortgage terms

To help others in this situation, can you quote the exact clause and tell us the name of the insurer.

I have never seen a clause like that in home insurance that I have taken out.