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Topic starter
05/07/2012 10:29 am
Hi
I want to rent out my flat - what implications would this have on my Trust Deed.
When the TD was set up, my circumstances were that I was living separately from my childs father, and I had my mortgage etc to pay. We have since got back together and I am back staying in the family home with him, contributing to "some" of the bills. My friend has split with her partner and is living in my flat giving me £300 per month (which doesnt cover my mortgage) - I pay the remainder and also give my other half £300 per month as a contribution towards the bills in the family home.
My friend has now got herself a place and is moving on, but I am happy where I am, staying as a family unit with my partner and our son, and so I would like to let my flat out.
I think I can get £450 a month, of which I will increase my contribution to the family home bills to around £400.... As I have slightly more income per month (around £50) - would I have to increase my contribution to the TD for the remainder of the term. I dont have any free money at all each month, this situation wont make me any better off financially, it just means I am happier in my life staying with my partner.
Can anyone give me some info on whether this would change things for the remainder of my trust deed?
I really struggle the now with the TD as when it was set up, they allowed absolutely ZERO money for me on a monthly basis to cover the likes of birthdays etc - I have to borrow to get my little boy clothes etc. If this was increased at all then I would be screwed financially...
Thanks - look forward to your replies.
05/07/2012 10:38 am
Hi shosho
Looking at the information you provide, I really dont see any reason for an increase. If you are in a position where the rent equals the mortgage payment and associated costs then there is no real variation.
Best run this by your Trustee, but I'm sure it will be fine.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
05/07/2012 10:26 pm
Legally speaking you Will require permission from your trustee and also your mortgage provider, as your flat will vest with your trustee as will any income generated from property that does vest with him. Also unless you have a buy to let mortgage, renting it out without permission of your mortgage provider could breach the standard terms of the security they hold over it, which could mean renting it out without their permission could put you in default.
I am sure it will be fine though like Shona says.
Good luck
07/07/2012 1:02 am
Might be an idea to get accurate costs too, you are not likely to have significantly improved finances with the figures stated. Factor in a month empty, some safety certificates, an EPC, a little advertising, a lick of paint, a change of locks and a landlords insurance policy and I'd be surprised to see profit.
