A cautionary tale about the perils of letting your home without adjusting your mortgage has us wondering. The popularity of the Airbnb-style short rental has spread like wildfire but has this led to a general lack of awareness about the legal requirements of “turning” Landlord?
In a recognition of Airbnb policy, it was ruled earlier this year that London property owners could provide paid sleeping accommodation to the same person for less than ninety consecutive nights if they informed their mortgage provider first. Planning permission need not be granted for this temporary arrangement although rules in other UK areas may differ. It remains illegal for tenants to sublet.
If you’re considering a longer-term property let, it's vital that you check your mortgage agreement and renegotiate the terms of your loan if necessary. There are additional legalities to be aware of if you become Landlord of an HMO (a house in multiple occupation).
Camden Town, Kentish Town and surrounding areas continue to be some of North West London's most popular neighbourhoods for rentals and London Residential is committed to its responsibility as lettings agent with the biggest board presence in the area. We will advise Landlord and Tenant alike as to what is required of them legally. With over sixteen years’ worth of questions we've answered your questions in a comprehensive Guide to Letting, so you can rest assured that from EPC certificates to tenant reference checks, we have it covered. Alternatively, call us and we'll gladly answer your questions.
You might think that, as long as you pay your residential mortgage, your lender won’t care if you start letting your home. Think again. Apart from the fact that you’d be committing fraud, your bank can call in the loan. It’s happening more and more, says Lisa Orme, managing director of Keys Mortgages, who has picked up the pieces in many cases. “Lenders most definitely do care and do take action.”