Close relatives as tenants

Hi Danny

What would you do if your close relative fell onto hard times and could not pay? Could you really evict them and if you did, how would that affect the relationship with them and the rest of your family.

Something to check is whether there are any conditions in your mortgage preventing you from letting to family. Dont just check the offer, also check the special conditions booklet and if you don’t have one, write to your mortgage lender to request a copy. Such conditions are far more likely to be prevalent in recent mortgages, certainly those takes in the last 5 years but possibly up to 10 years. Breach of mortgage conditions would provide your mortgage lender with an opportunity to call in your loan and you would have no defence.
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Any new mortgage or a mortgage taken out with the intention of letting to a close family member will be regulated under the FCA. You can still get a regulated BTL but the options are drastically reduced.

The definitions of close family member for lending purposes are:

Any vertical family member eg Parents Grandparent Children or Grandchildren

And one Horizontal eg Brothers or Sisters.

With reference to family definition how does son in law fit in? I have a situation where my daughter was worried about her husband when court put a restraining order on him to keep away from her and he was on the street. Now I have a non paying tenant for the last couple of years. I know mortgage didn’t allow close relatives but have been banking on fact different surname would not arouse suspicions>

Reply to the comment left by “Pete Judd” at “15/09/2014 – 13:14“:

Hi Pete

Check your mortgage conditions carefully but I suspect you’re likely to be in the clear.

Your situation is horrible (good luck sorting that one!) but might help Danny to make a decision.
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