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

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    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.

    Comment


      #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

            Latest Activity

            Collapse

            • Reply to Estate agents letting fees
              by Harper62
              reply to: theartfullodger - the question relates to the agent's commission - the contracts are for one year or more and whether the agent should charge commission of a tenant stays longer than a year
              02-12-2021, 22:01 PM
            • Reply to Estate agents letting fees
              by Harper62
              reply to Andrew Dodd - I think you've misunderstood. As I mentioned the house has been let since 2006 - the agent finds the tenants and secures the rental amount, draws up the contract - it's a successful operation. My query related to the period the agent wants to charge commission on. That's what...
              02-12-2021, 21:57 PM
            • Reply to Estate agents letting fees
              by Hudson01
              I use an estate agent on a tenant find basis with no management but always interview each of the prospective tenants who pass the tests, i pay 1 months rent as their fee and that is it, if the tenancy lasts 1 year or 10 years i pay that one fee and that is it. Anything else i would not accept.
              02-12-2021, 21:36 PM
            • Reply to 5 Yr Residential tenancy agreement
              by landlord-man
              12 month AST

              Establish rapport with Tenants, do some. LL training and then sack the agent and keep more ££ yourself...
              02-12-2021, 20:43 PM
            • 5 Yr Residential tenancy agreement
              by Gurvinder
              Hi All

              We have a property which is managed by a letting agent
              He has found new Tennent's that want to lease it for 5 yrs. There is a large hospital near the property and the tenants are NHS workers.

              My questions are as below.

              1) I read somewhere a long...
              30-11-2021, 21:42 PM
            • Reply to Estate agents letting fees
              by theartfullodger
              So either do it yourself, no agent, or specify 6 months then rolling periodic.
              02-12-2021, 20:37 PM
            • Estate agents letting fees
              by Harper62
              Can I ask advice on this matter. I've had a property in London since 2006 which is rented. Whichever estate agent I use, they all want to charge a letting fee (let only not managed) on the whole term. Tenants often sign for more than a year and the estate agent is keen to charge a commission for each...
              02-12-2021, 19:00 PM
            • Reply to Estate agents letting fees
              by AndrewDod
              Why exactly do you want to use an agent for a Let only non-managed?

              The most critical bit of the process which you should be doing yourself (even for fully managed) you are devolving to others. Will end badly....
              02-12-2021, 20:22 PM
            • Reply to help / advice on letting
              by john19
              I really would be grateful if someone could please comment on my above post ;-

              1) Can you make an amendment to the existing tenancy agreement removing the estate agents as managing agents?

              2) if the estate agents will not amend the existing agreement and still say a new tenancy...
              02-12-2021, 20:17 PM
            • Am I going to have any issues with this s21?
              by Cotton
              for a s21 to be valid i need to give the tenant the gas certifcate, epc, eicr and the 'how to rent' guide before occupation

              Being a DSS tenant and not having access to their details prior to occupation, I emailed these documents to the council weeks before the tenant took occupancy at the...
              02-12-2021, 20:06 PM
            Working...
            X