BTL hypothetical question

smallblueplanet

boliston wrote: »

Letting to a friend could certainly be very awkward if the fiend were to have a change of circumstances that caused them to have difficulty affording the rent.

I understand. But the 'paperwork' would be done in the same way as if it were someone I didn't know.


What I want to know is back to my original point - is there a problem with renting a btl property to a friend, and is there a problem 'visiting the property as a guest of the tenant who has an AST'?


Thanks.

silvercar

What I want to know is back to my original point - is there a problem with renting a btl property to a friend, and is there a problem 'visiting the property as a guest of the tenant who has an AST'?

Always a risk renting to friends - will you evict if they lose their job and can't pay? Legally you can rent to a friend, though your mortgage probably stops you renting to a relative.

As for visiting the property as a guest, I can't see what action the lender can take if you can provide all the paperwork to show that the property is let under an AST. Imagine if push came to shove and the lender took you to court to repossess on the grounds that you had stayed there overnight. You would produce the AST, show bank statements with rent payments clearly highlighted and have kept up with the mortgage. I can't see a judge allowing a repossession.

G_M

smallblueplanet wrote: »

We have finally got some sort of financial stability and this has led me to consider investing in a btl property. I don't intend to become a fulltime landlord just a single place down in Cornwall. I have a good friend who wants to move there and so would (with proper agreements, etc) make a good tenant.


Would this be a problem with the mortgage company,
What? Renting to a friend? No.
plus how would it be viewed if the landlord (ie us) visited their tenant and stayed in the property with them for a few weekends in a year?
.

a) the mortgage lender would not know so would not 'view' it and
b) your friend the tenant is entitled to invite anyone he wants to visit.

You could not use it as your home.

* Tenancies in Eng/Wales: Guides for landlords and tenants

smallblueplanet

Thanks G_M. It's something I/we are considering and wanted to get the 'basics' straight before considering whether it is feasible and/or a 'good idea' or not.