Lodgers on a NatWest Mortgage

jellyfish002

I've recently taken out a mortgage with NatWest and one of the covenants was stating that I cannot get a lodger without written consent and my mortgage advisor has stated that they'll probably refuse if I go to them for consent. I'm a first time buyer and did receive a relatively favourable rate so wonder if this is part of the reason and they'd want to put me on a different package.

Has anyone had any similar dealings and know what the reasoning is for this? or if anyone has actually dealt with NatWest to get permission and can tell me what the outcome was?

I'd just like to know where I'd stand and what my options are for the future.

Voyager2002

Please check the exact wording very carefully... the rules about tenants are usually different from those when someone is paying to live in a room in your home.

The reasoning: partly because they have different products for BTL landlords, partly because if someone is renting a property then they have rights and so the process of repossession becomes more difficult. However, when someone is renting a room within your home they have effectively no rights and so this ought not to be an issue.

I suspect that messages have been misunderstood somewhere.

kingstreet

RBS used to have a form for adding another occupant so NatWest may have the same. Was this a NatWest "advisor" or someone who just took a guess?

jellyfish002

Voyager2002 said:

Please check the exact wording very carefully... the rules about tenants are usually different from those when someone is paying to live in a room in your home.

The reasoning: partly because they have different products for BTL landlords, partly because if someone is renting a property then they have rights and so the process of repossession becomes more difficult. However, when someone is renting a room within your home they have effectively no rights and so this ought not to be an issue.

I suspect that messages have been misunderstood somewhere.

I've just checked the mortgage terms and it states 'You will obtain our permission in writing before: giving up or sharing possession of the Property, or granting any lease, easement, licence or right to occupy the whole or any part of the Property; '

ACG

If you want to rent out the property or part of, you have to get their consent. Its nothing to do with the rate you applied for its just their criteria for everyone. 

They may grant it or refuse it. My experience is that they usually grant it, unless you apply to let out the whole property a week after completing. Then its likely they will refuse it. 

silvercar

Given that lodgers (as opposed to tenants) have very little rights and can be evicted very easily, I suspect that some people just take a lodger without asking lender permission. If the lender got stroppy over this, you could remove the lodger easily.

Hoenir

silvercar said:

Given that lodgers (as opposed to tenants) have very little rights and can be evicted very easily, I suspect that some people just take a lodger without asking lender permission. If the lender got stroppy over this, you could remove the lodger easily.

Standard practice is to require an Occupier's Consent Form for any adult living in the property who is not party to the mortgage agreement. The lender will require the right to unimpeded repossession of the property should the need arise. The form is a catch all safety net.  To cover all eventualities.