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Is this Legal?

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    Is this Legal?

    Currently living in a rented property which was occupied by the labndlord before starting renting it .
    I have a sneaky feeling that he has a normal mortagage taken out claiming that he is living in the property whereas in reality he was there only a few months and then rented out..is this legal? Do the banks not find out?

    #2
    Originally posted by valluvan View Post
    Currently living in a rented property which was occupied by the labndlord before starting renting it .
    I have a sneaky feeling that he has a normal mortagage taken out claiming that he is living in the property whereas in reality he was there only a few months and then rented out..is this legal? Do the banks not find out?

    It could invalidate his home insurance, so please take all precautions not to burn down this property. He should have notified his bank also, and they would probably load his mortgage interest rate. Not illegal though, but risky, as the bank could foreclose for breach of contract, and that could chuck you into the street.

    Comment


      #3
      not sure on the legality, but I think his buildings/content insurance will be void

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        #4
        foolishly i did this for 3yrs, rented out my flat before selling it.

        i think thats right - the owners BUILDINGS insurance would be void but your own contents should be ok

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          #5
          Originally posted by valluvan View Post
          Currently living in a rented property which was occupied by the labndlord before starting renting it .
          I have a sneaky feeling that he has a normal mortagage taken out claiming that he is living in the property whereas in reality he was there only a few months and then rented out..is this legal? Do the banks not find out?
          If he does anything wrong you can threaten to report him......

          Comment


            #6
            You dont actually have to change your mortgage from a normal one to a landlords one when you rent a house out. You do need to tell whoever you have the mortgage with that you are renting it though.
            As for insurance, the household policy doesn't have to change, but again you do have to tell the insurance company.

            At least that was my experience.
            "Israel, Palestine, Cats." He Said
            "See?"

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              #7
              In my exp the banks charge a different rate when you tell them....
              "If you can read this, thank a teacher....and since it's in English, thank a soldier"

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                #8
                They used to be fine and not charge for the conversion, then it was an "admin fee" to amend the mortgage details, now they void your mortgage and transfer you to a buy-to-let rate. :-(

                That's my experience anyway.
                Last edited by Mailman_1; 18 August 2009, 14:56. Reason: typo

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                  #9
                  If your landlord can't keep the payments on his mortgage (for 'your' house) then the bank will repossess the property and throw you straight out. You may come home and find all your possessions on the pavement.

                  http://www.housingrepossessions.co.u...e-arrears.html

                  If a landlord has an ordinary mortgage, any tenants in the property will be unauthorised unless the lender subsequently consents to the property being let. These tenants will have even less protection from repossession. If the property is repossessed the lender will not need a possession order to evict the tenants as they are not lawfully in the property. If the tenants refuse to leave, the lender may be able to evict them as trespassers, which can be done through the court in a matter of days. Any unauthorised tenant who learns that a possession order has been made should immediately start looking for alternative accommodation.
                  Cats are evil.

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                    #10
                    I'm renting my house out in the UK and the mortgage lender knows (and they provide the insurance so all OK there). Is the let administered by a reputable agent e.g. a high street estate agent as mine wanted a copy of the "thumbs up" from the mortage company before taking it on?

                    Mortgage with Yorkshire BS and they didn't up my rate; good people in my experience.
                    Last edited by TinTrump; 18 August 2009, 15:21. Reason: Thumbs up for YBS

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