Welcome to Legally Sound with Richard Reed, the podcast that simplifies the law and explores how it affects our daily lives. In this episode, Sarah Reid is joined by buy-to-let specialist Hannah Cullen and mortgage adviser Steve Lightley. They discuss property law with a focus on short term and Airbnb type lettings specifically.

Letting a property out by the night rather than the year can look like the obvious way to get more from a buy-to-let investment. The returns are often better and the flexibility is appealing, particularly with the Renters’ Rights Act changing how longer tenancies work. But permission to let short term isn’t automatic. It can be restricted by your mortgage conditions, the covenants on your title, the terms of a lease or the council’s planning rules.

Sarah is joined by Hannah and Steve to explain what needs checking before you commit, how lenders view short term letting differently, and what happens when a property is being used in a way that hasn’t been signed off on.

Here’s what we’ll cover in this episode:

· Why not every mortgage allows short-term letting

· How lenders stress test income that only comes in seasonally

· Restrictive covenants, lease restrictions, and who needs to give consent

· Planning permission, the 90 day rule in London, and Article 4 directions elsewhere

· Insurance, and what changes once you have paying guests rather than tenants

· The consequences of breaching your mortgage conditions and what sellers need to provide

Whether you’re buying your first investment property or already letting a property out, this episode will help you understand what’s allowed, what isn’t, and what to sort out before you commit.

References:

Buy to Let Blog Post: https://richardreed.co.uk/short-term-lets-key-risks-and-complications-to-consider/

Get in touch:

Website: https://richardreed.co.uk/

Phone: 0191 567 0465

Email: [email protected]

Connect:

Sarah Reid: https://www.linkedin.com/in/sarahreid-/

Steve Lightley: [email protected]

First Mortgage NE

Website: https://www.firstmortgage.co.uk/branches/north-east-england/?utm_source=google&utm_medium=cpc&utm_campaign=17364676705&utm_term=first%20mortgage%20north%20east&gad_source=1&gad_campaignid=17364676705&gbraid=0AAAAAD-hX3Z7WHvTD1cXz4PnoX6nb27Mg&gclid=Cj0KCQjwh4TVBhCWARIsAG0czmq45JLfJfhHcgIyHZFIlz-SahYzTcVVjRTMsU4Pn5Eeua_W6u0TA0caAqhIEALw_wcB