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Buildings insurance - second home
inkie
Posts: 2,609 Forumite
We are hoping to put an offer in on a second home soon. His is for our daughter and son in law to live in (residential mortgage no AST). I'm just pricing up buildings insurance which I'll need. It assumes that the the policyholder has the property as their permenant address (which it won't be). Nor do we fall into thw landlord situation. I'm just wondering how others in the same situation for round this.
ThanK you
ThanK you
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Comments
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Speak to a couple of big brokers: There's got to be some policy that covers it.
You say residential mortgage: Presumably in your name: Read the conditions? It might say you must live there....
If Daughter & SiL will be paying any form of rent then it will be a b2l,, a residential mortgage would be fraud & you'd need to comply with all landlord regs (more than 100 acts of parliament..). Rent does not have to be cash...
Your other thread, 28/122/2016,
https://forums.moneysavingexpert.com/discussion/5578120
says...
"No AST" eh? If they move in, pay any rent, in any form, it's an AST, even if not in writing.Next year we are wanting to buy an additional property which will be lived in by son and daughter in law who will pay rent to us.0 -
I am pretty sure you will need to get landlords buildings insurance (and contents if furnished) which is not as expensive as you might fear. Your daughter (who is your tenant unless you are covering the mortgage and not charging rent) will need to get her own insurance for her own possessions..
Also as this will be your 2nd property you will be subject to 3% additional stamp dutyIt may sometimes seem like I can't spell, I can, I just can't type0 -
100% landlord insurance and you have to tell your lender as well, rent or no rent becuse it will not be your main residence.0
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If you purchase a residential home, and allow your family to live in it, rent free, then this falls under residential regulation, not buy to let, therefore the OP is correct. Anyone experienced with a "decision tree" can tell you that.0
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You are absolutely 100% a landlord, and you will need either a BTL mortgage or consent to let. The AST will be implicit if there isn't an explicit one. Because your tenants are family members, you will find lenders very reluctant to be involved, and your choice severely restricted.We are hoping to put an offer in on a second home soon. His is for our daughter and son in law to live in (residential mortgage no AST). I'm just pricing up buildings insurance which I'll need. It assumes that the the policyholder has the property as their permenant address (which it won't be). Nor do we fall into thw landlord situation. I'm just wondering how others in the same situation for round this.0 -
I am sorry but you are wrong,
1) If rent is changing hands, then this would be a regulated buy to let contract, with buy to let products
2) If no rent is changing hands, this would be a residential regulated contract. with residential products0 -
Hmm. I'm sure I saw a mention of rent in the original post...0
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If rent is paid.
But bear in mind 'rent' is not just cash paid to the landlord.
It can be paid in kind eg paying for or doing renovations, improvements etc, or making payments to a 3rd party for money owed by the landord eg payments o the mortgage lender, boiler engineer, roofer, etc
Even if you do not breach the mortgage conditions (read them to be sure!), your insurer will probobly want to know about the arangement- if you just buy a standard policy off a comparison site you may find the insurer refuses to pay out following a fire when they discover it was not your main residence. Again - read the policy small print or discuss with a broker.0 -
Hmm. I'm sure I saw a mention of rent in the original post...
Indeed:Next year we are wanting to buy an additional property which will be lived in by son and daughter in law who will pay rent to us.
https://forums.moneysavingexpert.com/discussion/5578120
ETA: Oh wait, that's son and daughter in law, this one is daughter and son in law. So I suppose they're not necessarily seeking rent for this one....0 -
I'm not going completely mad, then...
Not completely, anyway...0
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