Buy to let - for a family member

26
Found 22nd Oct 2011
Am considering buying a property to let, now family member wants to rent the property off me, although a family member they still wish everything to be above board. Anybody see any problems with this?
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Fight!
Supermod
Are you getting a mortgage? Usually when you obtain a "Buy to Let" mortgage the lender stipulates that the property cannot be let to a "family member".
The problem with what?
Original Poster
DLM

Fight!



I hope not

magicjay1986

Are you getting a mortgage? Usually when you obtain a "Buy to Let" … Are you getting a mortgage? Usually when you obtain a "Buy to Let" mortgage the lender stipulates that the property cannot be let to a "family member".



I was considering a small mortgage, but am now considering buying it outright because of this
thesaint

The problem with what?



not sure
Banned
magicjay1986

Are you getting a mortgage? Usually when you obtain a "Buy to Let" … Are you getting a mortgage? Usually when you obtain a "Buy to Let" mortgage the lender stipulates that the property cannot be let to a "family member".



Could you move your cousin in with a different name and not tell the bank? (_;)
Supermod
DLM

Could you move your cousin in with a different name and not tell the … Could you move your cousin in with a different name and not tell the bank? (_;)



Lenders have their own conditions but I know that Halifax dont class a cousin as "family" for the purposes of letting the property...
Banned
magicjay1986

Lenders have their own conditions but I know that Halifax dont class a … Lenders have their own conditions but I know that Halifax dont class a cousin as "family" for the purposes of letting the property...



Great news
don't do it we rent an house out and was considering letting it to a friend of a friend but if they don't pay it makes it awkward for you so don't do it ... plus get land lord insurance too and rent guard in case they dont pay ...
Original Poster
whatsThePoint

If they fall behind with the rent are you prepared to kick them out?



I don't think this would happen, but you are right i am not sure what i would do, although i say i would do it, it is easier said than done
martinCrAzYmoore

don't do it we rent an house out and was considering letting it to a … don't do it we rent an house out and was considering letting it to a friend of a friend but if they don't pay it makes it awkward for you so don't do it ... plus get land lord insurance too and rent guard in case they dont pay ...


Thanks for your opinion, it is worrying if they did not pay up, but now it is going to be just as hard to refuse them
As long as you can prove you bought the house for rental previously shouldn't be a problem
yes major problem, landlord could get a prison offence if your relative claims housing benefit
Original Poster
I am definitely rethinking this idea although not sure how to approach it with them, although i did not say i would i said i would consider

I would get an insurance policy that would kick in if they don't pay etc.
That way, if they fall in arrears, it will be the company insuring you that will do the necessary, leaving you to tell your relative "It's out of my hands".

sedd33

yes major problem, landlord could get a prison offence if your relative … yes major problem, landlord could get a prison offence if your relative claims housing benefit



What a load of rubbish.
sedd33

yes major problem, landlord could get a prison offence if your relative … yes major problem, landlord could get a prison offence if your relative claims housing benefit



absolute tosh..

if you feel they will pay the rent and you are comfortable with it why not?
Banned
sedd33

yes major problem, landlord could get a prison offence if your relative … yes major problem, landlord could get a prison offence if your relative claims housing benefit



Fed up talking crap in paypal and ebay threads so you decided to show everyone you know nothing about another subject?
If relative ever claims HB would this not be termed what is known as a 'contrived tenancy'? The relative may well not be claiming this now but who knows what the future holds?
As long as its all done above bored, proper tenancy agreement, deposit in protection scheme etc.

We are currently renting off brother in law ( who is a p**** to be honest!) we sold our house and planned to rent for a year. He had a huge 4/5 bed house that was standing empty as it was too large and old to be good rental potential. So we helped him, but also means that we have a stunning house for a bargain rental fee.

Banned
sedd33

yes major problem, landlord could get a prison offence if your relative … yes major problem, landlord could get a prison offence if your relative claims housing benefit


this muppet should be on everyones' IGNORE list!
I have rented flats that i own, let out to family members before with no problems.

I honestly think the question to answer is could you evict them if they messed you about?
Edited by: "abacus" 22nd Oct 2011
Banned
Why do some people write everything in bold as if it's more important then what everyone else is saying?
I wouldn't worry about the mortgage rules, one of the other rules about them is you cant live in them yourself but that hasn't stopped me for 5 years!
LJM

If relative ever claims HB would this not be termed what is known as a … If relative ever claims HB would this not be termed what is known as a 'contrived tenancy'? The relative may well not be claiming this now but who knows what the future holds?



The housing benefit application has a tick box to let the authorities know if the tenant is related to the landlord.

The housing benefit department will then do further checks to see if there is anything untoward.
colinsunderland

Fed up talking crap in paypal and ebay threads so you decided to show … Fed up talking crap in paypal and ebay threads so you decided to show everyone you know nothing about another subject?





o look its the resident clown.

fact, i got done for 18 months 9 years ago for the exact above situation

but continue to bury your head in the sand, clueless muppet
sedd33

fact, i got done for 18 months 9 years ago for the exact above situation



Happy days
Banned
sedd33

o look its the resident clown.fact, i got done for 18 months 9 years ago … o look its the resident clown.fact, i got done for 18 months 9 years ago for the exact above situationbut continue to bury your head in the sand, clueless muppet



So what was the exact charge then? Link to the law? Just because you were so stupid you committed some sort of fraud, that doesn't mean everyone is dishonest like you. Most people are honest so your situation wouldn't apply to them. Funny how you only reply to my comment even though others said you were wrong too.
BTW still waiting for you to make me homeless you idiot.

In b4 you fail to either reply or fail to give any link sto back up that its a criminal offence for a landlord to accept rent from a tenant who is related to them.
Original Poster
Thank you to everyone who posted, had a long chat about this with sister and we both feel it is the way forward, i am looking to let and she is looking to rent, it is only short term for her, maybe two years at most, again thank you all
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