Can we rent it?

Swampy3k

Hello fellow MSE'ers I am looking for some advice here.


I currently own my own home in Lanarkshire with my partner, we have 54k left on the mortgage and intended to stay here for the foreseeable future however life plans have changed, as in:


My partner has been offered a substantial promotion in her career, but the catch is the job offer is in Dumfries (some 60 miles away from where we currently stay). Luckily, in my job role, We also have a establishment in Dumfries so I can apply for an internal transfer. We are looking to move to Dumfries and rent a house on a temporary basis until we can get fully established and will most likely buy a permanent home for us.


The catch is the current house. I would really like to hold onto it as you don't know what will happen in the future, not to mention it is a good investment. However renting it out I know I would need to change my mortgage to a Buy-To-Let, neutralise the colour scheme, probably update it slightly and obtain landlord insurance not to name a few. However, Luckily a family member is having issues with her current landlord and has decided to move out in February. I am thinking of letting her rent out my house just to let it tick over and pay the mortgage, but I am curious to the legality of it and any issues that could arise or any advice anyone could have on this.


Any help is appreciated thanks.

kinger101

You don't necessary need to switch to a buy-to-let mortgage. Your bank may give you consent to let, which typically lasts one year but may be renewed. The interest rate might change. If you let to a family member, you still need some form of tenancy agreement. And if it's let on non-commercial terms, any losses can't be offset against future profits on the same property.

One thing you should ask yourself. Are you prepared, if things go wrong, to evict a family member? It isn't always wise to mix financial affairs and family.

I'm not sure what your bank will think about letting to a family member or on non-commercial terms.

theartfullodger

Never rent to family or friends:

Only ever rent to someone you will happily evict in the full glare of local papers, TV & family Christmas rows...

Only ever rent if you have the financial AND emotional reserves to rent to the tenant (or agent-) -from-hell who doesn't pay for 7 months whilst you pay the mortgage & legal fees to get them out: And the repairs or the Sheriff will decide you are harassing tenant & give them more time to stay...

Support family member rent someone else.

Join SaL, do the landlord accreditation courses (free) and then you'll realise the minefield you have renting to a complete stranger, let alone relative..
https://www.scottishlandlords.com/Home.aspx
&
http://www.landlordaccreditationscotland.com/

Slàinte mhath!

Owain_Moneysaver

The legal issues are the same as renting to anyone else.
Landlord insurance
Landlord registration with local council
Deposit registration scheme
Gas safety certificate
Electricity safety certificate
Energy performance certificate
Furniture fire safety labels
Declaration of income to HMRC
Etc

bigfreddiel

Just commute, many of my colleagues commute 100 miles each way

I've done it, you get used to it

fj