Difficulty with mortgage and need to rent

I have a mortgaged property on a straight forward mortgage not Buy to Let.  With redunancy looming,  and with the resale market only obtaining half the price of what I paid I really need to cover my outgoings each month by either holiday letting or a temporary 11month contract each year.  Is this an option that is usually allowed with a mortgaged property?  Do Ineed to obtain a Licence before I advertise it for rent.  I have searched for some information but there are so many pages on other renting issues that it is difficult to find anything quickly and I really need to get in touch with a renting agent for this season.  Also I believe Ihave to pay taxes on the rental income.  What are the rules here please?

Hamtine

in theory, yes the lender should be told,

yes potentially tax is payable

in reality very few appear to declare the situation to the lender

in reality currently a lot of lenders are happy with anyone paying their mortgage on time and in full

hoping your situation improves.

Hi,

Yes, you should  tell the mortgage provider in any changes of use of the property. And declare any rental income both in Spain and the UK (if you pay UK tax). There is a double taxation treaty between the Uk and Spain to avoid people paying tax in both jurisdictions. Any excess difference between the two countries normally has to be paid where you are a registered tax payer.

As for licences, this differs from region to region, so you really need to talk to your town hall/tourism authority. I suspect many people don't have licences when they should, but you really should comply with all regulations to avoid any difficulties further down the line.

If you're renting out a property, then you really are best to consult someone who knows all about the system, like a gestor. They will be able to advise you and make sure you're doing everything by the book

Below are a couple of links you may find useful.

http://www.holidaylettings.co.uk/resources/owner_advice/buy-to-let-guide-for-your-holiday-home/spain:-financial-implications-of-owning-a-holiday-home/a-1-29-1478/

http://www.holidaylettings.co.uk/resources/owner_advice/buy-to-let-guide-for-your-holiday-home/spain:-property-taxes-for-non-residents/a-1-29-1525/

Hope this has been useful.