My brother may move into our rented flat but the small print in the Buy to Let mortgage states that family members are not allowed to be tennents. I checked with another couple of mortgage suppliers who confirm that the same clause is in their mortages. Anyone know the rational behind this?
Hmmm - it can't be because family members gain occupation rights beyond the standard AST because they don't. If you fail to issue a ground 2 notice, then it might take the lender longer to repossess. It might be because the lender thinks you'll let it at a rent lower than the repayments.
Daytona (Landlord & tenant)
What would my motivation be for renting out lower that the repayments?
I know that under the new Mortgage Regs commencing 31st October, that a BTL mortgage is still not a regulated mortgage contract, but a BTL mortgage with a family member as a tenant is a regulated mortgage contract.
It must be down to the fact Blood is thicker than water and you might not charge full rent or go for repossession if they fail to pay, therefore increasing the risk.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.