On a first time buyer mortgage wanting to rent with my BF in another city

FoxFinance24

Hello MoneySaving Expert,
I got myself in a bit of a pickle here and would really appreciate someone sharing their thoughts on my situation, please! 

Last year I bought my first property and I have been living in it with a lodger until now. I have a 5 year fixed term mortgage and so far everything is fine.

Just after buying the property, I started dating this amazing guy, and now we’re talking about moving together. He lives in a different city and it would be really difficult for him to move here with his job, so he suggested I move there.

i wouldn’t want to leave my current job as I do it from home most days and I could commute and stay over at my house on the days I need to be in the office.

I don’t want to sell my property at this stage, so I’m considering renting with my boyfriend there. 

What are the implications on my mortgage if I do so? Is there anything else I should consider?

Thank for all your input!

RAS

Start by reading the Tenancies in England sticky by G_M. They've been barred so there are a few more recent legal changes but it gives you an idea how complex managing a rental property is. Don't assume you can just hand this over to a letting agent. They have no legal training and based on numerous threads here have very little understanding of tenancy law. You'd still be legally liable for their mistakes when they make things up and some of the fines are substantial. Getting Al. The necessary certificates and insurance is expensive.

And if you've only been in the property a year, your mortgage provider may not give you consent to let. Even if they do, that is not likely to last more than two years. Bear in mind that your tenant could trash your property or just fail to pay the rent, or both. 

Momanns

It depends on what you mean. If you're talking about splitting your time between your property and your partners and giving them a little money on an informal basis, you won't need to do a lot.

If you are talking about either renting your property out or signing a joint tenancy then you are opening a massive can of worms and need to do some research. 

BarelySentientAI

FoxFinance24 said:

Hello MoneySaving Expert,
I got myself in a bit of a pickle here and would really appreciate someone sharing their thoughts on my situation, please! 

Last year I bought my first property and I have been living in it with a lodger until now. I have a 5 year fixed term mortgage and so far everything is fine.

Just after buying the property, I started dating this amazing guy, and now we’re talking about moving together. He lives in a different city and it would be really difficult for him to move here with his job, so he suggested I move there.

i wouldn’t want to leave my current job as I do it from home most days and I could commute and stay over at my house on the days I need to be in the office.

I don’t want to sell my property at this stage, so I’m considering renting with my boyfriend there. 

What are the implications on my mortgage if I do so? Is there anything else I should consider?

Thank for all your input!

So you're suggesting that you would keep the house for yourself to use (i.e. not rent it out) and visit it 'regularly' (i.e. not leave it unoccupied for months at a time)?

Basically no implications for this relating to your mortgage at all.

I don't know at what point a lodger would become a tenant though - if that happens all sorts of weird and difficult things apply.  If they stay as a lodger, seems pretty simple to me.

AskAsk

Simple scenario would be, still live at your house with the lodger.  Stay with your boyfriend on the days you want and pay him some money towards the rent. 

I wouldn't sign a rental contract with him as that will bring all sorts of problems, as you are then no longer considered to be living in your house.  Insurance, tax problems arise.

Not to be a party pooper, but your relationship could fail and you don't want to tie yourself into something permanent when you have other responsibilities.

Albermarle

RAS said:

Start by reading the Tenancies in England sticky by G_M. They've been barred so there are a few more recent legal changes but it gives you an idea how complex managing a rental property is. Don't assume you can just hand this over to a letting agent. They have no legal training and based on numerous threads here have very little understanding of tenancy law. You'd still be legally liable for their mistakes when they make things up and some of the fines are substantial. Getting Al. The necessary certificates and insurance is expensive.

And if you've only been in the property a year, your mortgage provider may not give you consent to let. Even if they do, that is not likely to last more than two years. Bear in mind that your tenant could trash your property or just fail to pay the rent, or both. 

The OP has not mentioned renting out their property ( so far anyway) .

AskAsk

Albermarle said:

RAS said:

Start by reading the Tenancies in England sticky by G_M. They've been barred so there are a few more recent legal changes but it gives you an idea how complex managing a rental property is. Don't assume you can just hand this over to a letting agent. They have no legal training and based on numerous threads here have very little understanding of tenancy law. You'd still be legally liable for their mistakes when they make things up and some of the fines are substantial. Getting Al. The necessary certificates and insurance is expensive.

And if you've only been in the property a year, your mortgage provider may not give you consent to let. Even if they do, that is not likely to last more than two years. Bear in mind that your tenant could trash your property or just fail to pay the rent, or both. 

The OP has not mentioned renting out their property ( so far anyway) .

I think that was in answer to the fact that the lodger can't be a lodger if the OP doesn't live there, so then he becomes a tenant.

propertyrental

FoxFinance24 said:

I don’t want to sell my property at this stage, so I’m considering renting with my boyfriend there. 

What are the implications on my mortgage if I do so? Is there anything else I should consider?

If you 'rent with your boyfriend, then your boyfriend's property will be your main residence. The implication on your mortgage is that you will be in breach of its terms ie that you maintain your owned and mortgaged property as your main home.

Additionally, there will be implications on

* your insurance

* your lodger (who will become a tenant if he stays)

* HMRC (tax on your income from the lodger tenant)

* your multitude of tenancy regulations

* your ability to move back in/evict the lodger tenant

etc etc

FoxFinance24

AskAsk said:

Not to be a party pooper, but your relationship could fail and you don't want to tie yourself into something permanent when you have other responsibilities.

You are totally right and this is why I’m not considering selling my little house at the moment! 

I guess the other question is how much financial pressure we both will be under maintaining two houses! 

propertyrental

Are you not maintaining two houses at present?

AskAsk

FoxFinance24 said:

AskAsk said:

Not to be a party pooper, but your relationship could fail and you don't want to tie yourself into something permanent when you have other responsibilities.

You are totally right and this is why I’m not considering selling my little house at the moment! 

I guess the other question is how much financial pressure we both will be under maintaining two houses! 

I know you think your boyfriend is amazing right now, but after living with him for a few months, your opinion of him may very well change, lol.  You don't really know someone properly until you have lived with them.

May be just see how things go and see if he is still amazing after 6 months living on-off with him, then you can think about making things more permanent, and worry about it then.