Renting Property

[Dicko]

I'm sure there must be a few posters on here that own and rent property?

I have a quick question... Can I just decide to start renting out my flat without telling the mortgage lender? I've heard that some people don't bother telling them but is that risky, or not really?

If you don't tell them what happens for example when your fixed rate period ends and you have to go and speak to them arrange a new mortgage? Can you just keep quiet?

I've never rented out a property before but assuming I have to use an letting agent, get landlord insurance etc.. can this still be done without having to speak to the Mortgage Lender and change to a Buy-to-let mortgage?

I've got no real experience in renting but as I've been living with the girlfriend for a while now my own flat could be getting a decent income so I want to try and rent it out.

 

[scaramanga]

I'm sure there must be a few posters on here that own and rent property?

I have a quick question... Can I just decide to start renting out my flat without telling the mortgage lender? I've heard that some people don't bother telling them but is that risky, or not really?

If you don't tell them what happens for example when your fixed rate period ends and you have to go and speak to them arrange a new mortgage? Can you just keep quiet?

I've never rented out a property before but assuming I have to use an letting agent, get landlord insurance etc.. can this still be done without having to speak to the Mortgage Lender and change to a Buy-to-let mortgage?

I've got no real experience in renting but as I've been living with the girlfriend for a while now my own flat could be getting a decent income so I want to try and rent it out.

If they don't know it's fraud. It's a pretty serious thing to be caught doing.

They might just charge you the extra they would be charging for a buy to let, but they have the right to foreclose on you as you've broken your terms. Your insurance wouldn't be valid and you won't get landlord's insurance without the details on the mortgage.

Until about a year ago you would probably have got away with it, but around that time banks started actively checking for this kind of thing and comparing electoral rolls to the names of those holding mortgages with them.

 

[thingonaspring]

it's worth looking into to see if you can do short-term letting. i did it for awhile with my first flat in similar situation, but that was a good few years ago now.
they gave permission to sublet for about 1.5 years or so, then after that i had to either move back, sell it, or switch to buy to let. think it cost about £100 to do the "admin" for the letter of permission and that was it.

 

[Dicko]

Ok good to know. I guess I'll just have to do a bit of research into buy to let mortgages and then go from there.

Most buy to let mortgages are 75% LTV aren't they? If so I might have to wait a while

 

[Dicko]

it's worth looking into to see if you can do short-term letting. i did it for awhile with my first flat in similar situation, but that was a good few years ago now.
they gave permission to sublet for about 1.5 years or so, then after that i had to either move back, sell it, or switch to buy to let. think it cost about £100 to do the "admin" for the letter of permission and that was it.

Hmm interesting, yeah I have proof that I am contracting away from home so I could always say it's a temporary thing, 1 or 2 years until the girlfriend and I are ready to move back.

Can't hurt to try huh

 

[Danishfurniturelover]

I'm sure there must be a few posters on here that own and rent property?

I have a quick question... Can I just decide to start renting out my flat without telling the mortgage lender? I've heard that some people don't bother telling them but is that risky, or not really?

If you don't tell them what happens for example when your fixed rate period ends and you have to go and speak to them arrange a new mortgage? Can you just keep quiet?

I've never rented out a property before but assuming I have to use an letting agent, get landlord insurance etc.. can this still be done without having to speak to the Mortgage Lender and change to a Buy-to-let mortgage?

I've got no real experience in renting but as I've been living with the girlfriend for a while now my own flat could be getting a decent income so I want to try and rent it out.

I did it mate and did not tell the mortgage lender, ball sucking b*stards do not care what they or any bank think about anything. Life is a game and the winner is the one who is strongest and can bully the others. They would be pretty quick to screw you over so fcuk em is what I say and always have said in these situations.

My advice is if you do let it out tell the renters that part of them renting the place means that you will have to go and collect mail from time to time. Really if your at least a little savy no one should find out. I have spent a life time getting round stupid rules that institutions put on us to keep us in our places, they make fcuking millions and want to b*tch about me making a little bit, nah jog on I aint having it.

Do what is best for you but think through all the angles first mate.

 

[chicken_badge]

Insurance might not be valid though.

It might be easier to change the terms of your mortgage to allow sub letting rather than buying a specialist package. If you are about to come out of fixed term then look into it, as you would just drop down to basic rate which is alright at the moment isnt it?

One thing I guess you could do if you can retain it as your fixed address is just have "lodgers". I did this when I went travelling and kept the small room as my own. My mate who rented did so on the understanding that I could return and live there anytime which of course I had no intention of. If your "lodgers" would buy that argument then claim the living room as your bedroom, have a sofa bed in there but allow them to use as they pleased. So long as you haven't got elsewhere as your registered address I can't see anything illegal about that.

 

[DHSF]

There are also tax implications so actually youre also evading tax - serious offense

 

[THFC]

Difficult to answer as every lender will have their own policy on what will be allowed. The term is consent to let, some may let you keep the same residential mortgage rate and terms whereas some might not.

 

[a spur from swansea]

There are also tax implications so actually youre also evading tax - serious offense

If you go down the route of saying you still live there the first £4700 is tax free,infact the government introduced this tax break.

Some lenders are more flexable about renting your house out than others in their mortgage terms,get a mortgage broker they should have a feel for the market who to go with. End of the day their are thousand and thousands of houses being rented out the chances of questions being asked are small,and infact their are houses being rented out to immigrants but in garden sheds and garages too.

Just rent out to people you know if possible and get hefty deposit off them to cover yourself plus insurance too.

 

[DHSF]

If you go down the route of saying you still live there the first £4700 is tax free,infact the government introduced this tax break.

Some lenders are more flexable about renting your house out than others in their mortgage terms,get a mortgage broker they should have a feel for the market who to go with. End of the day their are thousand and thousands of houses being rented out the chances of questions being asked are small,and infact their are houses being rented out to immigrants but in garden sheds and garages too.

Just rent out to people you know if possible and get hefty deposit off them to cover yourself plus insurance too.

Thats true the thing is by not living there you are obviously living somewhere else therefore you are making payments somewhere else and if someone is paying you then obviously it will show somewhere along the line. They can always find something through bank statements etc etc etc - HMRC that is but im being suspiscious whereas they may not have any reason to investigate someone. I generally think its always too risky

I know people who have done what the OP suggested and got away with it.