Is there anything in mortgages that prevent you from running a home business?

[MrsR]

Talking to my husband tonight and he said we should look at the mortgage to see if there was anything in it preventing myself from running a business like a holistic or beauty one from home. Now I'd never thought about anything like that before! Does anyone know if there is such a clause in some mortgages, etc?

 

[skymark]

Usually there isn't a problem, although the mortgage company needs to be informed of this as well as the insurance company, as they have an interest as to what the property is used for.

If your particular mortgage company or particular mortgage has issue with it, they will let you know, but you need to ask before you make any plans.

As every bank and every mortgage is different there is no one set rule, but I don't think it's been a problem for most home based therapists and techs.

 

[Sharkster]

Hi Mrs R,

I had to get written permission from my mortgage company. They were fine about it but said that I can't advertise the address. You will have to check the deeds to your house as they will usually stipulate if you can or can't run a business from home. Your will also need to check with your local council planning department to see if you need to planning permission.

Hope this helps and I hope it all works out for you!

Emma

 

[Ruth Mills]

I think it's definitely worth checking, especially for something like a home salon where you will have people visiting your house on a regular basis as part of the day-to-day running of your business.

And, as people have already said, the main stumbling blocks would be:

(1) The deeds of the house - particularly with regards to any "Restrictive Covenants" that may have been placed on the deeds, normally by the property developer. Common restrictive covenants include things like not allowing animals on the property, not letting you park a caravan or mobile home outside your house down to silly things like not letting you have a Sky TV dish on your wall! Not letting you run a business from your house is one that often pops up too

(2) The terms of the mortgage - you would need to speak to your mortgage provider about this.

(3) The terms of your buildings/contents insurance - you would need to speak to your insurer about this. In some cases, it may just be that anything to do with your business isn't covered by your home contents insurance policy, in which case you'd get commercial insurance cover for your salon equipment etc.

(4) The local council - they may want to start charging you Business Rates on your house (which are probably more expensive than Council Tax) if they think that a large part of your property is being used for business use - probably won't be a problem if it's just a single room being used for a home salon though.

 

[MrsR]

Many thanks everyone, appreciate your feedback - definately need to start going through the paperwork don't I.

 

['chelle]

And, as people have already said, the main stumbling blocks would be:

(1) The deeds of the house - particularly with regards to any "Restrictive Covenants"

Ruth is right, although some of the covenants are quite amusing! Bear in mind that the restrictive covenants often go back to the time when your house was built. My house was built in 1900 and amongst the restricvitve covenants was that we cant run a candlemakers from the house and we cant keep livestock (eg sheep and stuff) in the house!!

Re business rates, even if you are only using one room, you will still have to pay business rates for that room as far as I'm aware, as they charge you based on size. Give your local council a ring for some advice about the rates.

Take care:hug:

 

[oey]

Re business rates, even if you are only using one room, you will still have to pay business rates for that room as far as I'm aware, as they charge you based on size. Give your local council a ring for some advice about the rates.

Take care:hug:

I thought that if your room was mainly used for something else (e.g. bedroom/office/store room/dining room etc) and was used as a treatment room as and when required then you didnt need to pay business rates. I could be wrong here but somebody please correct me if so.

 

['chelle]

I thought that if your room was mainly used for something else (e.g. bedroom/office/store room/dining room etc) and was used as a treatment room as and when required then you didnt need to pay business rates. I could be wrong here but somebody please correct me if so.

oooh I dont know now! I think you are right, it has to be mainly for the purpose of business use (or perhaps solely for business use??)
Best to ring the revenues section of your local council I think!

 

[ksibet5031]

Hi
You will possibly need planning permission. I previously looked into this prior to opening my salon. The local council will have a free enquiry department, you will be able to write in a request explaining what you intend to do. However you must bear in mind the issues are generally with parking and customers coming and going throughout the day.
I didn't get permission in the end and it can be very costly so make use of the free wnquiries before doing enything.
Hope this helps?