Mortgaged Flat Home Insurance

FataVerde

I have a mortgaged flat where I normally live. I will be seconded abroad by my company for around 3-6 months and I will let my flat for this period. The bank already approved the rental. The renter is a friend of a friend and I don't expect any issues. I just want my building's insurance to be valid while I don't live there. What shall I do about home insurance? My residential home insurance is expiring soon. Can I get a temporary landlord insurance for only 3-6 months (the rental period)? And then start a new residential home insurance? I'm completely new to home insurance so any advice would be appreciated.

flashg67

try somewhere like https://www.compare-landlord-insurance.co.uk/?

I had a 3 month policy whilst I sold an untenanted rental house - cover was more expensive for a short term policy though

eddddy

You mention buildings insurance for your flat.

Looking at your previous post, you have a maisonette/flat with a shared freehold. Is that the one you're talking about?

• What are the buildings insurance arrangements (In terms of what the lease says, and what actually happens)?

• What does the lease say about subletting? (Is it allowed? Do you need freeholder consent? Is there a minimum period like 6 months or 12 months?)

• Is your joint freeholder happy for you to sublet - even if the lease doesn't allow it?

Does your mortgage lender want to see written consent from your freeholder? If so, is your neighbour happy to sign the letter of consent?

propertyrental

Buidlings insurance is usually arranged by the freeholder for the entire building. Is that the case here? What does your lease say about insurance?
If there is existing buildings insurance, does it cover tenancies?

Renting to friends (or friends of friends) can be dicey-make sure you treat this as a business arrangement and do everything properly.

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

dimbo61

Please please make sure you do this right !
Gas Safe Certificate,  EICR. Right to Rent and How to Rent, Deposit ? Register deposit if you take one ? 
Inventory and Landlord Insurance 

RAS

You'll need to register with HMRC or the tenant holds back 25% of the rent. 

The minimum AST is 6 months and you'd need to comply with all the basic landlord legislation like deposit scheme, EICR, GSC. Plus have a UK contact they can report any repairs needed to.

And I'd advise having somewhere to crash if the tenant doesn't move out.

DullGreyGuy

FataVerde said:
Can I get a temporary landlord insurance for only 3-6 months (the rental period)?

You are more likely to buy a 12 month policy and then cancel it early. Just make sure you understand the cancellation costs before buying so you can factor it into your choice of seller.

propertyrental

RAS said:

The minimum AST is 6 months ......

More exactly, the minimum AST is one day, but a landlord cannot evict a tenant during the first 6 months.

So you could create a 3 month AST, tenant leaves as per contract after 3 months, all good.
Tenant does not leave after 3 months, landlord must wait 1 month (4 month point), serve S21 Notice giving 2 months notice, then at 6 month point apply to court for possession.

FataVerde

eddddy said:

You mention buildings insurance for your flat.

Looking at your previous post, you have a maisonette/flat with a shared freehold. Is that the one you're talking about?

• What are the buildings insurance arrangements (In terms of what the lease says, and what actually happens)?

• What does the lease say about subletting? (Is it allowed? Do you need freeholder consent? Is there a minimum period like 6 months or 12 months?)

• Is your joint freeholder happy for you to sublet - even if the lease doesn't allow it?

Does your mortgage lender want to see written consent from your freeholder? If so, is your neighbour happy to sign the letter of consent?

All of this issues are already solved, I just need to sort insurance. My joint freeholder and I have separate buildings and contents arrangements. My lender had me purchase liability cover when i purchased bec of the insurance arrangements. I asked my co-freeholder for a common buildings insurance but she had just renewed hers so we went with two individual ones. We'll probably merge at some point. Yes, subletting the whole flat is allowed without need for permission and my neighbour is ok with it. I don't need their permission but I obviously had a conversation with them.

FataVerde

Just wanted to thank everyone for their suggestions. It didn't occur to me you can get landlord insurance for just 6 months rather than a full year. Apparently it can be paid monthly at a slightly higher price so I'll go for that and revert back to my residential insurance afterwards. Since I'm not worried about contents, I wonder if any regular insurance covers buildings insurance for rentals as well.