Consent to let, HSBC - Airbnb a room

allofushere

We want to Airbnb a room in our house. Having looked in to it, it seems we need consent to let from our mortgage lender, in our case, HSBC.  It states on their site that they will usually agree if it is only for a short period of time.  Has anyone any experience of consent to let on a more permanent basis?  What are the extra mortgage cost implications etc.  Are they likely to grant it for Airbnb? We dont want to call them too early in our investigations and flag ourselves up....

tightauldgit

My experience with First Direct (which I would imagine would operate the same rules as HSBC) a few years ago is that they would just point blank refuse any consent to let. I was going overseas for a year and had to escalate to a senior manager to get it in the end, and I think the only thing that swung it was me pointing out that if they didn't allow me to rent then I wouldn't be able to afford to pay the mortgage!  

Of course that was several years ago and things may have changed. Also AirBNB is a different kettle of fish to a normal rental. I've never tried to do an Airbnb but if you need to the consent to let then you might as well just approach HSBC and ask them.

Edi81

If you are only going to Airbnb a room then isn’t this similar to having a lodger? 

silvercar

If you are Airbnb the whole property I can understand the need for consent, bnb-ing a room shouldn’t require permission as you remain resident.

user1977

silvercar said:

If you are Airbnb the whole property I can understand the need for consent, bnb-ing a room shouldn’t require permission as you remain resident.

Depends on what the lender's conditions say. In the case of HSBC:

"If you are the legal owner of the property and signing the mortgage deed giving us security for the money we lend, you must:...

* not share or give up possession of the property or any part of it unless you have a buy to let mortgage or we have otherwise given our written consent"

https://www.lms.com/conveyancerzone/Pages/Download.aspx?dem_id=1401197

(whether they'd ever notice or do anything about it is of course a different question)

silvercar

user1977 said:

silvercar said:

If you are Airbnb the whole property I can understand the need for consent, bnb-ing a room shouldn’t require permission as you remain resident.

Depends on what the lender's conditions say. In the case of HSBC:

"If you are the legal owner of the property and signing the mortgage deed giving us security for the money we lend, you must:...

* not share or give up possession of the property or any part of it unless you have a buy to let mortgage or we have otherwise given our written consent"

https://www.lms.com/conveyancerzone/Pages/Download.aspx?dem_id=1401197

(whether they'd ever notice or do anything about it is of course a different question)

The definition of possession is owning. So of course you can’t share the ownership of the property without consent. Airbnb doesn’t give possession. Otherwise anyone with a mortgage wouldn’t be able to have a visitor. Airbnb is basically someone paying to stay for a few days, visitors stay for free for a few days is the same concept without the money. I can’t see either needing lender’s consent.

Earn over £1,000 (each) in a year and the money is taxable or £7,500 in total using the rent a room allowance.

allofushere

Additional obligations state:

"You must occupy the property as your main residence and not let it without our consent".

We will be occupying the house, so this is a bit of a fluffy statement.  Does letting "a room" constitute letting "it"?

user1977

silvercar said:

user1977 said:

silvercar said:

If you are Airbnb the whole property I can understand the need for consent, bnb-ing a room shouldn’t require permission as you remain resident.

Depends on what the lender's conditions say. In the case of HSBC:

"If you are the legal owner of the property and signing the mortgage deed giving us security for the money we lend, you must:...

* not share or give up possession of the property or any part of it unless you have a buy to let mortgage or we have otherwise given our written consent"

https://www.lms.com/conveyancerzone/Pages/Download.aspx?dem_id=1401197

(whether they'd ever notice or do anything about it is of course a different question)

The definition of possession is owning.

No it isn't. If it was, that clause wouldn't make sense (a BTL borrower isn't sharing or giving up ownership to their tenants).

Sarah1Mitty2

I thought if you had a mortgage you owned the property and could do what you like, isn`t that supposed to be the advantage over renting? Even renters sub-let rooms though?

user1977

Sarah1Mitty2 said:

I thought if you had a mortgage you owned the property and could do what you like

No, of course you can't "do you what you like". Read the mortgage conditions posted above.

silvercar

You could just carry on. If someone tipped off the lender and if they thought it worthy of concern, they would let you know. At which point you just stop doing it or ask permission.