Legally am I obliged to notifying my mortgage lender if a friend is renting my house?

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    Legally am I obliged to notifying my mortgage lender if a friend is renting my house?

    Please help!!!

    My friend is moving into my house for a year.

    I have spoken to my mortgage lender Natwest who stated that I need to pay a £100 admin fee for a permission to lend pack???!!!!

    From a legal standpoint what would happen if I didnt get permission to lend from the bank? and just did it informally?

    I am going away for a year to do volunteer work and these things make it more difficult!!!!

    #2
    Originally posted by pclsia View Post
    From a legal standpoint what would happen if I didnt get permission to lend from the bank? and just did it informally?
    The bank could repossess your house.

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      #3
      Originally posted by pclsia View Post
      Please help!!!

      My friend is moving into my house for a year.

      I have spoken to my mortgage lender Natwest who stated that I need to pay a £100 admin fee for a permission to lend pack???!!!!

      From a legal standpoint what would happen if I didnt get permission to lend from the bank? and just did it informally?

      I am going away for a year to do volunteer work and these things make it more difficult!!!!
      My lender told me that without permission to rent, they would unilaterally add a 1% increase to the interest rate payable on the loan. Check your t&cs and see if they specify the relevant penalties.

      Comment


        #4
        I assume you mean that the friend is moving in and you are moving out.

        If, however, you mean a friend is moving in as a lodger then you don't need to tell them at all.

        If all they want to charge you is 100 pounds for permission to rent out then you should consider yourself lucky - some providers increase the interest rate and others insist you move on to a buy to let mortgage.

        Whilst the previous reply saying they could reposses the house if you don't inform them is correct, in practice this is unlikely as long as the mortage is getting paid. If or when they find out they are more likely to slap on some additional charges for retrospective permission.

        Comment


          #5
          Originally posted by fletchj View Post
          I assume you mean that the friend is moving in and you are moving out. .
          That seems to be exactly what she's saying

          Originally posted by fletchj View Post
          If, however, you mean a friend is moving in as a lodger then you don't need to tell them at all.
          .
          If the OP is moving out for a year and installing her friend in the house, presumably paying some rent, then the friend will be a tenant, even if she were to have no rent or payments for the period at all the friend could have some opportunity to lay claim to the property as her home, making it difficult to re-possess it.

          OP, be very careful about what you are doing, it would be far better to put the loan of the house on a proper footing so, if there were problems, you could repossess through the courts with a minimum of fuss.
          I offer no guarantee that anything I say is correct. wysiwyg

          Comment


            #6
            Originally posted by pclsia View Post
            My friend is moving into my house for a year
            Do not be tempted to do things 'informally' just because it's your friend. Is the friend going to be paying you rent? - because if so he/she will be a tenant, and this brings with it all manner of legal obligations on you as a landlord. The upside is that there is a clear legal structure and each parties' rights and responsibilities are already established in law.

            Even if your friend is not going to pay rent and would just be house-sitting, it would be advisable to talk to a specialist solicitor and have an agreement drafted as to the responsibilities of both parties. For example, do you expect them to water the garden? What happens if the boiler breaks down? What if you returned to find they'd moved a lodger in, or the roof had sprung a leak and your friend hadn't told you about it, just let the water damage get worse?

            Unwritten, 'friendly' agreements tend to be a recipe for disaster.

            Comment

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