Letting to Relatives

[Steve C]

Hi
I am at present in the process of re-mortgaging a property that is let to my niece. I have been told by my broker that I am in fact breaking the law as it is not possible to let to a relative.

Is this correct? He says that I must have a standard regulated mortgage. From memory I believe that I was originally ask if the property would be let to an immediate family member, which my niece is not.

If this is true, how unrelated must the tenant/landlord be? Any one of us could be related to just about any body we pass in the street, without knowing it.

[justaboutsane]

When my uncle purchased a property for me to rent we were told that I could not reside in the property as I was related to him. My uncle is not a blood relative, he is married to my mums sister.. however this was still not allowed.

We very nearly lost the property on this basis.. there are ways around it BUT it is risky. The Mortgage company could call in the mortgage if they find out you have broken the terms of the contract, however if the mortgage is being paid are they going to ask or investigate?

[JohnS ResidentBroker]

SteveC,

There are lenders who will do a buy to let for a relative you just need to find the right lender. For example Capital Home Loans will do this.

Regards
John

[Jonboy]

Letting to relatives should be against the law........

as should letting to 'friends' be, or lending them money!:) :rolleyes: