Are you an ‘accidental’ landlord?
‘Accidents will happen’, as seventies and eighties pop star Elvis Costello once sang – although he probably didn’t have the private rented sector in mind at the time.
However, it can be very easy to fall in to letting out property; perhaps after moving in with a partner and having a spare flat, or through upsizing.
Becoming an ‘accidental landlord’ in this way can be a good opportunity to invest or make provision for your retirement – but it can also be costly if you don’t get it right.
An article in the Daily Telegraph gives excellent advice for those people who suddenly find themselves in the buy-to-let sector.
The most crucial point is to notify your mortgage lender that your circumstances have changed and you need ‘consent to let’.
Some providers will be happy to let you continue without raising the interest rate while others will switch you to a buy-to-let mortgage.
It may be tempting not to go through the correct channels, but your mortgage provider is within its rights to demand instant repayment of the whole loan if it finds out that you have breached its terms and conditions.
Anyone seeking to become a residential landlord in the private rented sector is advised to seek expert advice.
We can offer support and management services for landlords, especially those building up a portfolio of investment properties – whether that starts by accident or design.
Contact us to find out more, and the Daily Telegraph article is well worth a read too at https://www.telegraph.co.uk/personal-banking/mortgages/illegal-rent-house-without-buy-to-let-mortgage/