What you need to know
Often life doesn’t always go exactly to plan and sometimes you can find yourself in a situation that you hadn’t intended to be in. Becoming an accidental landlord is not uncommon, however, there are a few things that need to be taken into account to ensure you keep above board.
This article does not constitute advice.
Professional advice should be taken prior to acting on any part of it.
Your property may be at risk should you be unable to maintain any agreed mortgage payments over the term agreed.
Are you an accidental landlord?
Becoming an accidental landlord can happen fairly quickly. It may be that you have to, or choose to, move out of your property for any number of reasons.
Maybe you have met a new partner, and decide to move in with them to share costs. Maybe you have to relocate for work or another reason. Or perhaps, you find yourself moving out due to unforeseen circumstances such as divorce, separation or a death.
Many people in these situations choose to rent their property rather than sell it and therefore find themselves as accidental landlords.
What are your new responsibilities?
Reporting your rental profits
By law, as a landlord you are required to report any profits you make from renting property to HMRC, as part of a self-assessment tax return.
It is only necessary to report profits, however there are benefits of reporting losses too.
Read more: Offset your Rental Losses to Save Future Tax
Tax could be due on your rental profits, depending on your tax position, which will be payable by the usual deadlines.
Ensure you have a contract in place
Paperwork is important when you are a landlord. To protect both you and the tenants there needs to be a suitable contract in place. A solicitor can help with this, or there are options available to download online.
Consider your mortgage options
Working with a mortgage advisor will ensure that you get the best mortgage for your new situation. Some mortgages will allow you to continue on the same package with them when you become an accidental landlord, others don’t. It is important to know where you sit and the timeframe you have to get your mortgage in order.
There are some competitive buy-to-let mortgages available now. Review our latest mortgage rates.
Need help with your rental property. Speak to Chris
If you have found yourself in the situation of an accidental landlord and would like us to undertake a review of your current mortgage, please contact Chris for a free, no obligation appraisal.
Tel: 01403 780 770