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What is an accidental landlord?

What is an accidental landlord?

What is an accidental landlord?

An accidental landlord is someone who finds themselves in the position of owning a property they want to rent, but who have come about these circumstances unexpectedly. You could become an accidental landlord for several different reasons such as inheritance, being unable to sell your old house, and job relocation. Regardless of how things occurred, an accidental landlord is someone who needs to rent out their property, despite having no previous intentions of becoming a landlord.

 

What should I do next?

The first thing you should do after becoming an accidental landlord is to consult with a mortgage adviser who can advise you of the best steps going forward. It is important to make your current mortgage lender aware of your changing situation, so that they can give you the go ahead to rent your property.

There are two different ways that you can go about renting your property. Your mortgage lender will either give you a Consent to Let, which allows you to rent your property for 12 months, without changing your current mortgage. Or the other option is changing your residential mortgage to a Buy to Let. Whatever you decide to do, our advisers here at Meridian can talk you through the most suitable options for you.

 

What responsibilities will I have as a landlord?

There are various safety checks and legalities that you must carry out and adhere to in order to become a landlord. The main safety checks include:

  • Gas and electrical safety checks
  • Fire checks and ensuring that all furniture provided meets fire safety standards, and carries the fire-resistant symbol
  • Running a right to rent on tenants to ensure they can live in the UK
  • Obtaining any relevant licenses and permits

 

How does becoming a landlord change my tax?

As with any income, it must be declared. When you start renting your property, it is important that you declare it to HMRC as they will need to be aware of any profit you make from renting, but also because it is likely you will need to complete a tax return form, regardless of whether you’re making a profit or a loss.

 

How does this affect Stamp Duty Tax?

If you own a Buy to Let property, and wish to another property in the future, the new property that you buy will be considered a second property. This means that you will be made to pay higher rates of Stamp Duty Tax.

 

Ensure of what best suits you?

The best thing to do if you’re unsure of your options and cannot decide how best to handle your situation, get in touch with one of our advisers who are well experienced in helping provide the right solutions to people’s mortgaging inquiries.

 

If you would like any support from us, please complete this form and we will be in touch.

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Our extensive knowledge and experience, along with our access to a comprehensive range of mortgage products across the UK, including access to exclusive deals, enables us to find the most suitable mortgage for you and your circumstances. We want to help you buy your new home and make the process as simple as possible.

As Specialist New Build Mortgage Advisers, we can find the most suitable mortgage for you. Meridian has been helping our customers buy their dream homes for over 25 years.

 

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
There may be a fee for mortgage advice of up to 1% of the amount borrowed. A typical fee is £99 but this will depend upon your circumstances.

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