Btl for family , will any lenders accept family as tenant

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    Btl for family , will any lenders accept family as tenant

    Hi, hope someone can help here,
    I'm looking to get a buy to let mortgage on a property nearby so my father can live there, just been told by northern rock that they won't give me the btl as it will be let to a family member. I meet all criteria other than this
    Is there any lender that will ? Maybe someone has been here before

    Thanks lee

    #2
    Unhelpful reply, sorry, but public forum,,, you appreciate the problem of dad maybe not getting HB/LHA??
    http://england.shelter.org.uk/get_ad...amily_member#1

    (No offence but..) my personal rule is, only let to someone if you are prepared, in the full glare of local papers, to evict them if things go wrong (that could be your financial things going wrong, not dad's fault..)
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      A good Whole of the Market mortgage broker will be able to point you towards (after a bit of research) a lender wom will take a view on the application.

      As theartfulldoger says Lenders don't like it was it puts them in a strange position. The landlord commonly has issues if their is a default and don't follow the normal rules and act promptly. Housing Benefits don't like it because it has potential of fraudulent practice of false claims.

      Generally your going to have a difficult time family tenants. Its at odds as how society should be, we should look after our family but..

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        #4
        Completely agree with Adam.

        But it ain't where Dave's legislation is going...
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          BTL lenders work on the principle that when family members live in a LL's property, there is a greater risk of the borrower defaulting on the mortgage because he will be reluctant to pressure a family member for unpaid rent, and even more unwilling to evict them.

          I'm not sure how you can get round that.

          Any chance of other family members investing jointly with you so you could buy the property outright?
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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            #6
            I can never remember a lender requiring to know the relationship of a potential tenant you are going to be renting to before they lend.
            Allow tenants to protect their own deposits. I want free money when they do it wrong

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              #7
              It is on most mortgage lenders application forms. Im not sure but probably on the Mortgage Offer too as a clause.

              Comment


                #8
                Originally posted by thesaint View Post
                I can never remember a lender requiring to know the relationship of a potential tenant you are going to be renting to before they lend.
                Then you haven't studied many buy-to-let mortgage offers, is all I can say.

                It's a standard restriction.
                'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                  #9
                  Originally posted by YesAdam View Post
                  It is on most mortgage lenders application forms. Im not sure but probably on the Mortgage Offer too as a clause.
                  I can understand it being on a mortgage offer, but that is another matter.
                  What you put on an application form in regards to a potential tenant is not legally binding.

                  Otherwise, what happens when you finally get a mortgage 3 months down the line, and your potential tenant moved into a different property 2 months prior?
                  Allow tenants to protect their own deposits. I want free money when they do it wrong

                  Comment


                    #10
                    Originally posted by thesaint View Post
                    I can understand it being on a mortgage offer, but that is another matter.
                    What you put on an application form in regards to a potential tenant is not legally binding.

                    Otherwise, what happens when you finally get a mortgage 3 months down the line, and your potential tenant moved into a different property 2 months prior?
                    The lender is not interested in individual Ts, simply the type of tenant, e.g. students, young professionals, a family (unrelated you the owner!), HB tenants, and so on. Some BTL lender actually specify the type of T you must recruit - e.g. students.
                    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                    Comment

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