Letting a flat declared as my residence

fitzwells

I live abroad and have just bought a small flat to have somewhere to stay when in the UK. I have therefore stated on the purchase documents that it is not to be let, but if I were to change my mind and decide to let it in a few months time, what would be the consequences?

rjwill10

I believe you would need to inform your mortgage lender that you are letting the property. They can either refuse based on the fact that you have a residential mortgage, they could agree, but essentially change your mortgage type (higher interest), or you may have to remortgage with a different lender. If you don't inform them, you risk having your mortgage cancelled for breech of contract. I asked all these questions when i took my mortgage out as I planned to rent my current property so that I can purchase a new one. The above options were given to by Nationwide.

lincroft1710

If you bought the property with the help of a UK mortgage, you would need to ask for their consent to let or be obliged to switch to a buy to let mortgage.

Although extremely rare, there may be a restrictive covenant against letting the property out.

Do be aware that letting a property in the UK is not something to be done on a whim. It has to be approached as a business and a property landlord has many legal obligations.

AlexMac

Have a look at your lease as presumably, this is a leasehold flat. Every one I've ever had prohibited short-term ("holiday") lets but permitted teanacies of 6 months or more, but in one case (an ex Local Authority flat with Council as freeholder) I had to seek their Solicitor's formal permission and impose conditions on any tenant similar to those in my lease (noise, nuisance, dogs, etc...) for a fee.

Most people wouldn't have bothered to ask the freeholder , but I did as I was renting via a Social Landlord/ Housing Association so needed it all to be above board.

davidmcn

fitzwells wrote: »

I have therefore stated on the purchase documents that it is not to be let

Do you know which "purchase document" you're talking about?

G_M

As well as getting permission from your mortgage lender, you would need permission from others, and compliance with a whole host of regulations. This post might help:

* New landlords: advice, information & links

fitzwells

Thank you all for your replies.
This is a CASH purchase, I don't have a mortgage and therefore that angle is not relevant.
The purchase document is the one my solicitor sent me, presumably to establish how much stamp duty I should pay.

G_M

fitzwells wrote: »

....
The purchase document is the one my solicitor sent me, presumably to establish how much stamp duty I should pay.

You need to confirm

* exactly what document this was - using a term like 'presumably' leads to doubt, and
* exactly what wording is used

This could have been the SDLT form. The TR1. The lease. The contract. Or some other document referring to a covenant restricting the use of the property.

Once you clarify the above, we can maybe advise on 'the consequences' of letting.