Family member living in my flat - the rules?

Bops123

Hi everyone

I have a query that I hope someone knows the answer to as I can't seem to get a definitive answer anywhere.

I have been in a long term relationship for about 15 years. For this time me and my partner have lived in seperate houses (a modern couple!). We recently decided that I will move into her house and I have sold my house. This house will remain hers and I am not going onto the mortgage. Instead, to protect myself financially and stay on the property ladder I have bought a flat down the road. This is my only property and is partially mortgaged. Basically she pays the mortgage on her house and I pay the mortgage on my flat. It is the only property I own.

So far, so simple. My partner has a 23 year old son who currently lives at her house. We all agree that he needs some independence but he can't afford to move out due to high rents. Our plan was for him to move into my flat. This would be rent free. All the mortgage, bills and utilities remain in my name and will be paid by me. I would be 'visiting' frequently and there may be the odd night where I stay at my flat.

My query is - what are the rules here? I'm not renting the property and I'm making no income. Everything is in my name and all bills are paid by me. I'm also on the electoral roll there as it's my only property. Do I need to convert to buy to let even though I'm not 'letting'? My mortgage company allow customers to apply for 'permission to let' but as I said I'm not actually letting.

I can't find a proper answer online and everyone I speak to is unsure.

Any advice would be greatly appreciated.

davidmcn

Firstly, read your mortgage conditions. You will probably find they contain something along the lines of

You must use your property as your only or main home unless we agree otherwise.

(an example from Halifax's mortgage conditions) - so you'd need their consent even if it isn't a letting, and it usually makes things easier if it is a "normal" letting.

Also, this bit doesn't make sense to me:

Bops123 wrote: »

I'm also on the electoral roll there as it's my only property.

Are you moving out or not? In fact, have you ever even moved in to your flat? You should be on the electoral roll at the place where you live, it has nothing to do with ownership.

MortgageVirgin

I can't think of any reason why a 23 year old shouldn't be able to pay their way. Are you letting him stay there for free (whilst also covering his bills!) just to avoid any complications with the mortgage?

HappyMJ

Bops123 wrote: »

Hi everyone

I have a query that I hope someone knows the answer to as I can't seem to get a definitive answer anywhere.

I have been in a long term relationship for about 15 years. For this time me and my partner have lived in seperate houses (a modern couple!). We recently decided that I will move into her house and I have sold my house. This house will remain hers and I am not going onto the mortgage. Instead, to protect myself financially and stay on the property ladder I have bought a flat down the road. This is my only property and is partially mortgaged. Basically she pays the mortgage on her house and I pay the mortgage on my flat. It is the only property I own.

So far, so simple. My partner has a 23 year old son who currently lives at her house. We all agree that he needs some independence but he can't afford to move out due to high rents. Our plan was for him to move into my flat. This would be rent free. All the mortgage, bills and utilities remain in my name and will be paid by me. I would be 'visiting' frequently and there may be the odd night where I stay at my flat.

My query is - what are the rules here? I'm not renting the property and I'm making no income. Everything is in my name and all bills are paid by me. I'm also on the electoral roll there as it's my only property. Do I need to convert to buy to let even though I'm not 'letting'? My mortgage company allow customers to apply for 'permission to let' but as I said I'm not actually letting.

I can't find a proper answer online and everyone I speak to is unsure.

Any advice would be greatly appreciated.

So...you own a flat which you claim to live in but rarely actually do.

If you want your step-son to move in you'll have to get a BTL mortgage. You'll also have to act properly as a landlord paying out for gas safety certificates and meeting your obligations as a landlord.

moneyistooshorttomention

I would interpret mortgage condition of "only OR main home" as meaning =

- Well its not my MAIN home (ie as I'm living with my partner)

BUT

- It IS my ONLY home (ie as partners home is THEIR home).

I would see no reason personally to do anything other than what I personally thought I would and thought wouldn't even cross my mind of telling mortgage company or anyone else. The only reason to "tell" would be if partners son was paying rent to live in OPs home - and then HMRC would need to be told about that (ie because it was income received).

If no rent is received - then no need to tell them either.

All round, I'd be taking a view of "why go looking for hassle?". Because, if you do, you'd then have to prove you're right. Why bother to prove it? - if you are you are and why give other people the chance to create a problem that doesn't exist?

HappyMJ

moneyistooshorttomention wrote: »

I would interpret mortgage condition of "only OR main home" as meaning =

- Well its not my MAIN home (ie as I'm living with my partner)

BUT

- It IS my ONLY home (ie as partners home is THEIR home).

I would see no reason personally to do anything other than what I personally thought I would and thought wouldn't even cross my mind of telling mortgage company or anyone else. The only reason to "tell" would be if partners son was paying rent to live in OPs home - and then HMRC would need to be told about that (ie because it was income received).

If no rent is received - then no need to tell them either.

All round, I'd be taking a view of "why go looking for hassle?". Because, if you do, you'd then have to prove you're right. Why bother to prove it? - if you are you are and why give other people the chance to create a problem that doesn't exist?

I don't think you can count it as the OP's ONLY home as they really live with their partner and they as a couple count it as their home. You don't have to own a home or be on the tenancy agreement to call it your home.

xylophone

The house is not being let - the OP's only home is the flat.

He is allowing a friend to live there for nothing- indeed is subsidising him by paying all bills and insurance.

He may sometimes stay there himself - if he is on the electoral roll there then presumably he uses it as his main address and can collect his post from the flat if he wishes.

Is there really any problem?

150940

xylophone wrote: »

The house is not being let - the OP's only home is the flat.

He is allowing a friend to live there for nothing- indeed is subsidising him by paying all bills and insurance.

He may sometimes stay there himself - if he is on the electoral roll there then presumably he uses it as his main address and can collect his post from the flat if he wishes.

Is there really any problem?

That's not correct though is it?

It's the only property he owns. His home will be with his partner, in her house.

ManofLeisure_2

[QUOTE=xylophone;6957709

He may sometimes stay there himself - if he is on the electoral roll there then presumably he uses it as his main address and can collect his post from the flat if he wishes.

Is there really any problem?[/QUOTE]

In theory, I don't think this is a problem. However, I do know of a similar scenario and when it came to the eventual sale of the property, it was investigated by HMRC as a 'possible' tax dodge. Namely, that it was seen as a convenient way of avoiding the payment of Capital Gains tax. Before anyone jumps on me lol, I'm not suggesting that the OP is intending to do the same

poppasmurf_bewdley

davidmcn wrote: »

Are you moving out or not? In fact, have you ever even moved in to your flat? You should be on the electoral roll at the place where you live, it has nothing to do with ownership.

Not quite true.

If you have more than one address, you can be on the Electoral register for each of those addresses.

If these addresses are in different local authority areas, you can actually vote in local elections in each area perfectly legally. You cannot, however, vote more than once in a General Election, but if it happened that there was a Parliamentary Bye-Election in each of those areas on the same day, you could legally vote in both.

Simple, isn't it.

This happens in many instances. People with multiple homes can elect which constituency to cast their General Election vote, usually choosing the one where their vote could have the most effect, ie a critical or marginal seat.

davidmcn

poppasmurf_bewdley wrote: »

If you have more than one address, you can be on the Electoral register for each of those addresses.

Yes, but the test is whether you ever actually use those addresses as residences, not whether you are an owner or tenant of the address (which seems to be the impression the OP has).