Live-in landlord denied?

rpgo

Lover_of_Lycra wrote: »

Go wild and read your mortgage documents.

I did, 6 months ago and several times, but then again english is my second language and it is hard to follow all the thick legalese/jargon/technical terms.

Socajam

The house is not yours until you made that last mortgage payment - failure to make payment(s) means the bank can take it at any time.
Also make sure to inform your insurance company that you have lodgers.

rpgo

Socajam wrote: »

The house is not yours until you made that last mortgage payment

This is what I thought too! But AdrianC is gritting his teeth saying it is!

G_M

rpgo wrote: »

Thank you for all the replies.

I always understood a lodger as a type of tenant. I've re-read G_M's link on lodgers and when I end up in the housing act of 1988, resident landlord is definied while drowned in tenant/tenancy terms. At no point lodger is mentioned, so you can see where I got confused.
In legal terminology, a lodger is an 'Excluded Occupier'. That means excluded from the rights and obligations of tenants under the Housing Act.

Wouldn't I need to have a contract with a lodger, or is a gentlemen's agreement enough? And how does that work with insurances? Do I need a special insurance for lodgers?
Yes a written contract is wise. But not legally required.
Yes written house rules are wise.
Yes you need to check with your insurer- it may be fine or not.

I understand the house is not technically mine yet due to the mortgage
Yes it is technically, and legally, yours. Check the named owner on the Land Registry Title here.

But you have borrowed money so have a debt..

so I can understand the lender requesting to be informed about anyone else living here.
Read the terms of your mortgage.It may require you to tell them but probably not.

If I do get lodgers, do I need to inform the lender in any other way (I only know of CTL for these sort of intentions)?
In most cases, no.

Have you read the link in post 5? See my signiture!

AdrianC

Socajam wrote: »

The house is not yours until you made that last mortgage payment

Cobblers.

failure to make payment(s) means the bank can take it at any time.

They can't "just take it". They need to get a court to allow them to exercise their right to take ownership of the security against your loan.

G_M

rpgo wrote: »

Heh? So why do people need CTL when letting if the house is theirs? Just in case tenants wreck the house?

No. Because if the owner fails to pay the mortgage, and the lender tries to re-possess the property, it is harder if there are tenants living there, not the owner.

Also the risk is higher.

Also the loan is a 'business loan' (letting a property to tenants is a business), not a consumer loan (to a resident owner).

rpgo

G_M wrote: »

In legal terminology, a lodger is an 'Excluded Occupier'.

Ok, THIS little bit of info is the turnover point. Believe me, I've been reading into a LOT of info regarding all this and I don't recall seeing this mentioned (hopefully I didn't miss it!).


Thanks a lot, it is all much clearer now.

G_M

Socajam wrote: »

The house is not yours until you made that last mortgage payment - failure to make payment(s) means the bank can take it at any time.
.

As Adrian said: "Cobblers!"

G_M

rpgo wrote: »

Ok, THIS little bit of info is the turnover point. Believe me, I've been reading into a LOT of info regarding all this and I don't recall seeing this mentioned (hopefully I didn't miss it!).

Housing Act 1988 section 31.

sammyjammy

I get a feeling your journey to having lodgers is not going to end well.