Letting property to daughter

milothewestie

my house is on a normal residential mortgage, I'm moving out but letting the property to my daughter, do i have to convert to buy to let mortgage or is it okay to let to close family

regards

Nobbie1967

You may be able to get a period of 'consent to let', how long will your daughter be renting it for? Otherwise, yes you will need a buy to let mortgage and also check that they would allow letting to a family member.

G_M

You will need CTL or a BTL mortgage.

Many mortgage lenders do not permit letting to family.

See also

* New landlords: advice, information & links

theartfullodger

Many landlord insurance policies will not cover you if renting to relatives: e.g. place burns down, all occupants 'orribly maimed, you then bankrupt, daughter never speaks to you again.

Normal advice is never rent to relatives or friends.

Never rent to someone you are not happy to evict through the courts in full glare of local TV
, local papers & family rows..

By all means support relatives rent somewhere else from another landlord, but rent your place to a boring normal credit & reference-checked punter.

Oh, and should daughter need benefits - eg housing benefit - renting from close relative usually a problem.

flashg67

My buy to let mortgages specifically exclude letting to friends & relatives.

xylophone

Do you have to "let" the house to your daughter?

Can she not live in your house as a sitter while you live elsewhere?

agrinnall

xylophone wrote: »

Do you have to "let" the house to your daughter?

Can she not live in your house as a sitter while you live elsewhere?

I'd guess paying the mortgage on the house is the issue. Are you suggesting that she stays in the house without a tenancy agreement and hands the rent equivalent over to the OP for them to pay the mortgage? It might work but I can see both the lender and HMRC not being very happy about it if they find out (not to mention the OP's need to comply with letting laws).

xylophone

The OP clearly wants to keep his property (perhaps he wants to return after a spell working elsewhere) - if this is the case, he might need to accept that he must pay the mortgage, but his daughter does pay him enough to cover the utilities as she is using them?

davidmcn

xylophone wrote: »

Can she not live in your house as a sitter while you live elsewhere?

Almost certainly not while complying with the mortgage conditions or insurance policy.

xylophone

Almost certainly not while complying with the mortgage conditions or insurance policy.

If the daughter were already living with the OP and the OP had to move to rented (for work say) while the daughter was settled in a job local to the property, would the OP be regarded as letting to his daughter if she were paying no rent, just an amount for keep, as used to be commonly the case?

In the above circumstances, would the insurer/mortgagee be happier if the daughter left and the house were left empty?

agrinnall

xylophone wrote: »

If the daughter were already living with the OP and the OP had to move to rented (for work say) while the daughter was settled in a job local to the property, would the OP be regarded as letting to his daughter if she were paying no rent, just an amount for keep, as used to be commonly the case?

In the above circumstances, would the insurer/mortgagee be happier if the daughter left and the house were left empty?

If you're now raising this as a theoretical question that's fine - I don't know the answer but it would be of interest to find out.

But as it was the OP himself who said that rent would be involved I still think my previous point that the money is needed to pay the mortgage is likely to be valid.