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Using rental income but not having permission

3 replies

Mel15sa · 30/08/2024 19:27

Hiya,
my friend has been renting her help to buy house out as she had to move away, and was unable to sell at the time. She told me she is freaking out as she never asked for the permission from the mortgage company. Now she is trying to remortgage the help to buy off into the mortgage (or something like that), and worries the soliticor will ask about if there was consent. She thinks they will freeze her rents saved up and her house will be taken away if she says she didn't seek it. I think she is being stupid, but kind of jealous too that she could take in this money (about 25K for 3 years, but equally this help to buy stuff is like a marmite style deal I have heard). I've heard this kind of practice is common, did anyone get in trouble? Is she fine to show the solicitor the saved up amount came from rent. But yeh, I think I'm more like 'urh I wish I had that additional cash', is that stupid of me...xx

OP posts:
exprecis · 30/08/2024 19:29

I did this a long time ago - for some reason it just didn't occur to me that I needed permission from the mortgage company.

It came up when I phoned them about something else, they transferred me to a buy to let mortgage, it was no big deal

RidingMyBike · 31/08/2024 08:52

We notified our former landlord's bank when we realised this was what she was doing! It's not just the mortgage company, it means the buildings insurance is invalid. If she'd taken out proper landlord insurance she'd have been asked about the mortgage on the property.

Has she paid tax on the rental payments received as well?! She really needs to come clean about all of this.

Imanontoday · 31/08/2024 08:54

Well you’re a charmer being envious. We did this. Didn’t realise we had to ask or it wasn’t permitted, there was no issue.

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