I have a house valued recently at ?70,000
and had it surveyed with regard to raising ?80,000
by way of mortgage and the surveyor has submitted a report
costing ?65.00 saying that it is suitable to lend against

The property has no mortgage and is free of any encumberances

The money will largely be used to turn the place into a more residential
home

I live there myself but want my girlfriend and her child to move in

however, at the moment I have a few people staying over with me
its a huge house and I have them give me money on a casual basis
so it is, in a sense, rented out partially

But when (if) I get the money I will not have people stay in this manner
so they will leave when I get it and do the alterations

The finance people have raised objections by way of "there being locks on the doors" and "evidence of partial letting"

It seems bizzare to me as I can't do one thing until the other happens etc
there are no contracts and the whole thing is on a casual basis

Has anyone run into this type of situation before

Would 'they' accept some kind of affadafit stating that the place will not be
affected by any tenancy agreements?

Appreciate any guidance
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Seems the sort of problem a solicitor could negotiate
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If you want them to lend them I would make sure you can meet their requirements. If there are locks on doors it would sound like the house is being rented to and in this along you could be breaking all sorts of other laws e.g. have you got gas safety certificates, fire doors etc
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Yep, wait until you try to get rid of them too. (Not your girlfriend and sprog - that will be much harder).

FYI - HMRC won't like the "casual basis" rent much either. Does any of it appear on a tax return? Rent a room relief may be available depending on the amount.
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the money I raise on the mortgage will be used
to purchase a business, and with the money from that business
I intend to convert the house properly into a more residential
place - so there won't be anyone else there then anyway

It's all a bit arse about face if you asked me

the 'locks' are on the doors by way of the regulations (inc fire etc)
that were foisted upon me when I did in fact rent it out on a more
commercial basis

You can get a 'buy to let' mortgage, but then you are
not supposed to live there yourself and it costs ?,000 more
to set up

its begining to seem like I have done my ?65
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Yep, wait until you try to get rid of them too. (Not your girlfriend and sprog - that will be much harder).

FYI - HMRC won't like the "casual basis" rent much either. Does any of it appear on a tax return? Rent a room relief may be available depending on the amount.


its the place where I live - a home
I can't see how its so much of a crime
to have people in the house - that is what is house
is for after all

the 'people' are not on fixed contracts - as I know them
and they will go straight away if I ask them

and yes - I do declare any money given
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