Please help?

syl_wood

Hello everybody, I am new on here and I have specifically registered to ask help with a problem.
My husband and I were living in a one bedroom flat when I became pregnant. We asked our mortgage lender if we could let out the house to move into a bigger place but they refused.
We stayed there for 3 years but then we had to move so , on suggestion of many people and even an estate agent we decided to let it out to my aunt.
we have been trying to sell it since and we received and accept an offer last week. So far so good..
however yesterday we received all the paperwork that we need to fill in from our solicitors and one question asks for our motgage company and account number and another question ask if someone over 17 is living ta the property and renting it.
what should we do? we are worried if we say yes that the solicitors might report that information to our lender and if we denied could we have problems with the completion date and the notice since we need the property to be free for exchange of contracts?
I really hope someone can help and maybe clarify what info the solicitors are going to give to our lender?
Thank you in advance!

tlc678910

I think they are asking if anyone rents the house so that they are sure they will get vacant possession i.e. the new owner doesn't want to find someone living in their new home.

Can you ask the family member to move out now and then (honestly) declare it is not rented out. Can you afford to manage with the property empty for a while until the house is sold.

Tlc

anselld

Just answer truthfully and explain to your solicitor that the flat will be vacant at exchange of contracts (which you have presumably agreed with your family member).

The solicitor should not need to give any information to your current lender. They are largely irrelevant as you will be redeeming your mortgage on completion. (or are they involved in your own place / onward purchase?)

G_M

Get the tenant out.

Frankly your mortgag lender is the least of your problems.

HMRC is a bigger issue, both for Income Tax and Capital Gains Tax...................

(apologies if you have been declaring.......)

syl_wood

Thank you all for your suggestions. We have come to the decision to get the tenant/family member out asap.

teddysmum

However, if you have not been declaring the rental income, the family member may prove difficult to move, by threatening to report you for tax evasion.


Capital Gains tax should be paid on the property as you are living elsewhere.