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SarahBell

Airbnb Against The Mortgage Terms

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http://www.theguardian.com/money/2016/apr/02/airbnb-guests-cost-you-your-home-breach-mortgage-terms

, but renting out your house is likely to be a breach of your mortgage terms, meaning charges or rate rises – or worse

Customers with Bank of Ireland, Barclays, the Co-op, Clydesdale bank, Coventry building society, Halifax, HSBC, Lloyds bank, Leeds building society, Metro bank, Nationwide, the Post Office, Royal Bank of Scotland/NatWest, Santander, Skipton building society, Virgin Money, Yorkshire building society and Yorkshire bank who let out their property on Airbnb (or a similar site) without consent are breaching the terms of their contract

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I posted this earlier on but the mods didn't allow it. Weird.

Anyway, I think it's interesting how much hold your mortgage holder has over the use of your home. Most won't allow you to even rent your home out for a week according to the article.

Wonder what penalties you get if you're caught?

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It probably is against the rules, but I know a few people who had lodgers to make ends meet, er some time ago, back in the 90s.

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It probably is against the rules, but I know a few people who had lodgers to make ends meet, er some time ago, back in the 90s.

Mortgage contracts tend to be okay with lodgers (but they might ask to be informed). It is the renting out the entire property they have problems with.

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But how would they ever find out?

I'm sure mortgage fraud is endemic, but nothing is done.

You could write to the banking ombudsman asking them whether checks are done with airbnb properties

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It's not just the mortgage lender that can scupper letting through AirBnB. Some time ago I booked a flat on a gated estate in London through AirBnB. It was all very satistactory. This January I wanted to go to London again and tried to find the same flat - not available. In fact no flats / houses on the estate were advertised on AirBnB. Intrigued, I did some digging and found the estate's rules, which forbid subletting for less than 3 months. I couldn't find any specific rules on renting out a room short-term, but tellingly I think, there aren't any rooms advertised on AirBnB either.

Edit: splung

Edited by Snugglybear

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Pretty sure this also applies to BTL loans as BTL T&Cs generally specify that the property must only be let under an AST, thus precluding its use for AirBnB, as per this 2014 Simply Business article (which references an earlier Guardian article looking at the number of properties that appear to be let via AirBnB as active holiday let businesses, presumably also without declaring as such for tax purposes):

Airbnb and buy-to-let mortgages

Most standard buy-to-let mortgages will require landlords to let their properties on an Assured Shorthold Tenancy (AST) basis. This is the standard agreement on which most properties in the UK are rented, and they normally have a term of either six or 12 months.

Buy-to-let lenders will generally explicitly forbid short-term lets on properties against which they have given a mortgage. As such, if you have a buy-to-let mortgage you will likely be breaking the terms of your agreement if you let it on a site like Airbnb.

Airbnb and insurance

Although the terms of insurance policies vary, it is important to understand that many landlord insurance policies will also require properties to be let on an AST basis, and will explicitly exclude short-term lets. If you want to let a property on a short-term arrangement, you will probably need to secure dedicated holiday let cover, but you should understand that letting your property like this will likely invalidate your landlord cover.

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Mortgage contracts tend to be okay with lodgers (but they might ask to be informed). It is the renting out the entire property they have problems with.

I think the Mortgage Lenders main requirement with lodgers is normally that their presence is noted on their records and that they are included by the borrowers on their house insurance policies.

God knows what the insurance requirements are for AirBnb.

Edited by stormymonday_2011

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