money, Property problem

[leemi1982]

Hi me and my girlfriend have been together for three years and we would both like to be living together, however the financial situation is putting a bit of strain on the relationship, I have my own property which i bought in 2007, and she lives in a council house about 12mile from my home, problem is she won't move into my house doesn't like the area i live in and to far from her parents and work.

 

Now I would be happy to move up her way into her council house but the problem is with my property i bought it in 2007 and peak of the market at 115k now worth between 95k 92k with the market decline, i still owe 98k, I tried to looking into renting my house out but I'm told i need a mortgage to let which is expensive and I'm not allowed one because i own less than 25% of the house. So I'm basically stuck here and unable to sell the house as i also still owe more than its worth which would leave me with nothing and probably have to buy my way out.

 

Does this sound right from the banks

[tattoobunnie]

Not at all. Whether you bought this as your own personal home or to bring in rental income, this is still your home. You are able to do whatever you want with it...tear it down, fix it, rent it. Who told you this? You do not need a bank's permission to rent out your home.

 

Source: I own commerical and residential property with tenants.

[Habibi]

Hi,

please note that below reply is completely wrong and might put you at risk for a big fine !!!

Yes, you indeed need to ask permission to your lender to rent the house in order for them to asses the "new" financial situation.

Bear in mind that once you take this step, the tenants will be paying directly the bank as the bank will never allow that cash to go straight to you and will be deducted from the mortgage amount.

Any deviation from this procedure and you might suffer a big fine.

Sure you can do it behind their backs BUT if you encounter issues with the tenants or they just go to your bank to complain...ANYTHING...then you are doomed.

I have been working in the bank industry and procedures are very tight...and tough!

 

 

Not at all. Whether you bought this as your own personal home or to bring in rental income, this is still your home. You are able to do whatever you want with it...tear it down, fix it, rent it. Who told you this? You do not need a bank's permission to rent out your home.

 

Source: I own commerical and residential property with tenants.

[tattoobunnie]

I've never heard of that. I've been in real estate for over a decade. For instance, if you take in a roommate, you do not need to ask the bank's permission, and why would your tenants know who your lender or bank even is? Or let's say, you let your relatives live there, and they are given you money...why would the bank tell you, "no, family cannot live there."?

[mhowe]

Not sure if this is issue, but OP doesn't live in US -- he said "council house" -- Europe or Canada. Maybe different rules.

[tattoobunnie]

Oh...good point.

[nutbrownhare]

I think the laws on this may be different depending on whether you're in the UK or the USA.

 

If you have a tenancy agreement (required in UK law if you're letting it out to tenants) then you are legally obliged to get permission from your lender; this may or may not be granted depending on the kind of mortgage. The legal stuff wouldn't apply, obviously, if a friend or family moved in with you on an informal basis. There are also a load of legal responsibilities which apply to landlords and tenants - which protect both sides.

[Habibi]

And it gets quite difficult to get a lender's permission if this is your first house or your primary residence.

Sure you can always say that you are going through a difficult situation or moving in into girlfriend's house but that will only raise the alarms to them.

Be careful on your approach.

Nonetheless, all tenants payments will go straight to the bank (100%) and not the monthly mortgage payment amount

 

 

 

I think the laws on this may be different depending on whether you're in the UK or the USA.

 

If you have a tenancy agreement (required in UK law if you're letting it out to tenants) then you are legally obliged to get permission from your lender; this may or may not be granted depending on the kind of mortgage. The legal stuff wouldn't apply, obviously, if a friend or family moved in with you on an informal basis. There are also a load of legal responsibilities which apply to landlords and tenants - which protect both sides.