Renting our flat

[Belliot]

I have to relocate for six months due to my job - the plan is to rent out our flat for this period - can anyone tell me if I need to tell the mortgage lender??

[wishy123]

The short answer is to read the terms of the mortgage agreement, There will almost certainly be something in there about the property being for your sole occupation and/or that of your immediate family (otherwise it would be a 'buy to let' mortgage) , so if that situation changes you probably need to tell them to ensure there are no problems further down the line. However I don't think a short term arrangement like this would cause any problems. You definitely need to let your insurance company know as if you don't, your cover may be invalid and that would cause the mortgage company real concern. There are lots of insurers out there offering policies to cover let properties as your household insurer will probably not provide cover in these circumstances.

[Belliot]

thanks for that.. I think you mean the building insurance? As I am on the first floor the ground floor flat (lease holder) actually bills me for this every year.. so its not even in my name - do you think that still effects things??

[buildersmate]

Yes, he does mean buildings insurance.
It would be normally covered under your leaseholder's policy - though you ought to check that under the terms of the lease you are allowed to let your flat - should be OK, but worth checking.

[Twenty20]

You will also need landlord's contents insurance. It's normally not much, unless youre letting out a fully furnished house. It will cover things like fridge, freezer, washing machine, carpets etc.

You will need to tell the mortgage company. There may be a small charge from them.

You should also be aware that you may not be able to get back into your flat in 6 months time. If you get a difficult tenant it can take at least 3 or 4 months after that to get them evicted. It's something to keep in mind, that you may need to find alternative accommodation until they have vacated. Also, you may find it more difficult to let out if there's no chance of the tenant's being allowed to stay on longer than 6 months.

[Hymie]

Many years ago a colleague had a 2 year placement abroad and let his house during this period (via a letting agency). The house was in such a state when he returned that he wished he had not rented � the people who rented his house were clearly of the view that in return for paying rent, they could do as they please to his house.

You might take the view that he was unlucky with his tenants, but to be honest most rented properties that I have seen look like the occupants park their push-bikes on the lounge carpet (and those are the good tenants).

Plus with the way the market is right now, with many trying to rent, because they cannot sell � you will be lucky to find a tenant who only wants a 6 month rent. Take a look in your local paper at the number of rental properties available.