Letting to Family Member
I would really value some advice about letting to a family member please.
I have recently retired and purchased a “retirement home” for my wife and myself.
My intention is to let my current property to my daughter and I have consequently contacted my mortgage provider (Woolwich – Barclays) for permission to do this. Reading the application form that I received from them suggests that consent will not be given as my daughter is currently in receipt of Housing Benefit (£970 / month).
My mortgage situation is that I have an interest only tracker mortgage for which I am paying £46 per month, the mortgage completes in February 2016. I have for a number of years been overpaying and reduced the amount that needs to be repaid by £13,000.
My question is would the Woolwich / Barclays be likely to consent to my letting to my daughter given the minimal mortgage repayment amount, less than 3 years to completion and my having overpaid by £13,000?
The local council have agreed to pay the monthly £970 rent directly into my bank account.
Whilst I would wish to do things legitimately my daughters current tenancy expires at the end of July and with no hope of obtaining alternative accommodation at the LHA rate I feel that I have limited options.
Any advice would be most gratefully received
Many Thanks Dave
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Previous Article
Neil Gammie of Birmingham
Member Since August 2013 - Comments: 31
1:20 PM, 7th July 2013, About 13 years ago
> “The LA has a duty to house people unless they intentionally make themselves homeless”
It’s not that simple. There are many issues to consider before a local authority accepts a main housing duty. Even if a main housing duty is accepted, discharging that duty is far from straightforward.
Re. the bedroom tax – this is only applicable in the social housing sector.
> “Probably the most important thing is that currently the council have a duty to house your relative and will do so automatically if evicted from the current accommodation…at which stage the Council will have the responsibility to re-house.”
Again, this isn’t necessarily accurate – unless I’ve missed a comment where Dave has stated that his daughter has made a homelessness application and the local authority has accepted a main housing duty. As I noted above, neither the process of accepting a main housing duty nor the action of discharging that duty are straightforward, so relying upon either or both of those things would not be a safe option.