Q: My son has a healthy deposit, but the housing prices in this area is very high, he can command a reasonable salary based on mortgage, but repayments on a salary, he means no life! So the thought in his mind to buy, work abroad again, and then subletting in his absence to work colleagues, but without telling the lender. Now I know you must not specific, but can someone tell me why-nots, so I can relieve him better!
If you bought a house to live in, moved in and then a few months later decided to go abroad and rent it out, at least your mortgage application would have been honest. You would then have only omitted to tell them you are temporarily going overseas and not asked for consent to lease as opposed to making a totally fraudulent application.
Then the question is how would they find out? Obviously you must keep up with your payments. The risk is when you give them a different correspondance address. Unless you arranged with royal mail to forward the mail and didn't tell them!
You would obviously need to take notify the building insurer. some lenders ask for proof of building insurance, this is not a problem as a lot of letting insurers also do residential insurance.
You would need to make sure that you can afford the payments while funding your life abroad and arrange for the property to be managed (and let) in your absence.
There are numerous regulations connected with letting, but most of it is common sense and with the internet and a good letting agent, I haven't had a problem.
If this period expires and he still wants to continue letting the property out, they may insist that he remortgages onto a Buy To Let mortgage.
Best thing to do would be to tell any prospective mortgage provider upfront, and then he wont come unstuck in the future.
I dont understand why he wouldnt tell his lender tho?
Make sure he is sorted if he does let out. He needs to be organised for it.