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“Family let” where one of tenants is my daughter

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Hi I am new here. I am a very small time landlord, we have just one BTL property in London. My daughter is a student in Manchester and as she seems likely to stay on for an MA I am thinking about making use of some money my mother has given me as the deposit for a property for her (daughter) to live in plus one or two friends paying rent. 

So I put this to my current lender today and they said they didn’t offer mortgages on such a basis as it’s a “family let” and therefore considered higher risk. 

My questions are: 

1. Is this going to be the answer I get from every lender I contact? Or should I just give up now?

2. How do they work this out anyway - surely my own daughter is less of a risk? 


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Hi Sarah. It's down to mortgage regulation and how they interpret it. Any close family can make it a regulated BTL and very few lenders do it. I do a lot of these and I have a lender who would be happy for your daughter to be a tenant as long as she doesn't occupy 40% of the property or more.

Check the planning as all Manchester City postcodes are Article 4 and your daughter and two friends will be a HMO. If the property is not a HMO you will not get planning if your daughter wants to live in the student areas off Wilmslow Road.



Regards Simon

Searchlight Finance Ltd

T:01565 654005


Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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