Property experts - remortgaging whilst property has tenant

[random1]

Hi all,

I have a quick question which would like to ask any resident proprty experts.

Please can you assume that person in question bought a flat couple of years ag.
A couple of months after completing, person in question changed job within company whereby worked overseas for a few days a week.
A couple of months after that, person in question decides to live overseas and rent out flat.
Person in question currently has tenant living in flat, but mortgage fixed rate is coming to an end and would like to remortgage.

What does person in question have to declare to new bank... person in question will be returning to live in flat in a few months so does not want to get a BTL mortgage and therefore it would be preferable if the new bank did no know this person was a tenant.
But does the tenant have any legal rights etc that I need to know about? - clearly when the bank sends a valuer round they will ask questions of the tenant... I would like to be clear what rights the tenant has ... if they are asked to pretend they are moving out in February, could they make life difficult?

Think it is just easier to pay SV rate - is 150 per month difference, but the status quo is maintained and no one has to answer awkward questions.

Thanks in advance for any advice

[Vesuvius 996]

random1 said:

Hi all,

I have a quick question which would like to ask any resident proprty experts.

Please can you assume that person in question bought a flat couple of years ag.
A couple of months after completing, person in question changed job within company whereby worked overseas for a few days a week.
A couple of months after that, person in question decides to live overseas and rent out flat.
Person in question currently has tenant living in flat, but mortgage fixed rate is coming to an end and would like to remortgage.

What does person in question have to declare to new bank... person in question will be returning to live in flat in a few months so does not want to get a BTL mortgage and therefore it would be preferable if the new bank did no know this person was a tenant.
But does the tenant have any legal rights etc that I need to know about? - clearly when the bank sends a valuer round they will ask questions of the tenant... I would like to be clear what rights the tenant has ... if they are asked to pretend they are moving out in February, could they make life difficult?

Think it is just easier to pay SV rate - is 150 per month difference, but the status quo is maintained and no one has to answer awkward questions.

Thanks in advance for any advice

Good idea so long as you don't mind being done for fraud.

You've had a tenant in your flat and you didn't tell the Bank who gave you the mortgage? Why not? To save money, presumably?

You seriously think it doesn't matter to the Bank that they lend money on a property which they won't be able to reposess because it's got a tenant in it, and you deliberately didn't tell them so that it'd be cheaper for you.

FFS get a grip.


If you rent out the property you have to tell the Bank, and get their consent, otherwise you are in breach of your mortgage terms and they will bullyram you.


Tonker

Edited by Vesuvius 996 on Friday 3rd October 09:40

[DonnyMac]

Do you have any other UK properties, i.e. is this your ‘primary’ UK residence?

[scotal]

Where are you living at the moment? In the same part of the country, a completely different part of the uk, or aborad?
Do you have any other mortgages?

[random1]

Property is primary UK residence ... no other mortgages

Edited by random1 on Friday 3rd October 10:04

[scotal]

random1 said:

Property is primary UK residence ... no other mortgages

Edited by random1 on Friday 3rd October 10:04

Then there is alender who will allow you to do what you want to do, however...... it depends on where you have been living.

[random1]

scotal said:

random1 said:

Property is primary UK residence ... no other mortgages

Edited by random1 on Friday 3rd October 10:04

Then there is alender who will allow you to do what you want to do, however...... it depends on where you have been living.

Spain - but still a UK resident on UK contract, paying UK taxes etc

[scotal]

random1 said:

scotal said:

random1 said:

Property is primary UK residence ... no other mortgages

Edited by random1 on Friday 3rd October 10:04

Then there is alender who will allow you to do what you want to do, however...... it depends on where you have been living.

Spain - but still a UK resident on UK contract, paying UK taxes etc

Then its possible.

[fade2grey]

when I did essentially the same thing, I just phone my mortgage co & asked, they send me a permission to let form, duly signed & returned, it was valid for a fixed length of time. I extended it 3 times & then about 3.5 years later re-mortgaged onto a BTL without any problems. All above board & everyone happy. It didn't affect my interest rates etc either.

[Eric Mc]

random1 said:

scotal said:

random1 said:

Property is primary UK residence ... no other mortgages

Edited by random1 on Friday 3rd October 10:04

Then there is alender who will allow you to do what you want to do, however...... it depends on where you have been living.

Spain - but still a UK resident on UK contract, paying UK taxes etc

Have you been making Rental Income returns under UK Self Assessment tax regulations?

Edited by Eric Mc on Friday 3rd October 11:02

[hamski]

Assuming you only want to get on a decent rate again and don;t want any more money, why not just ask your existing lender for a new deal?

[Piglet]

Remortgaging will involve paperwork and you will then have to chose whether to commit fraud or not. The paperwork will ask whether you let the property or live in it. Tell the truth and you are in BTL land, lie and you commit fraud.

I may know someone who may in the past have failed to disclose to their lendger that their property was let. This may have been at a time when their property was in negative equity, they had moved away for work and BTL needed equity which they didn't have. BUT (had this fictional scenario happened) they wouldn't have tried to remortgage they would have bitten the bullet on SVR or asked the existing lender for a new fixed rate and hoped that the existing lender didn't ask them to reconfirm all their details which would have involved lying which they wouldn't have done.

In this purely fictional scenario the person I may have known was disclosing the rental income and filling in SA's so there was no tax evasion.

Edited by Piglet on Friday 3rd October 13:12

[Pugsey]

Setting the mortgage issue to one side for a mo., might it not be the case that you insurance is not valid at the moment - unless you've told your insurance company about your arrangement?

[Vesuvius 996]

Pugsey said:

Setting the mortgage issue to one side for a mo., might it not be the case that you insurance is not valid at the moment - unless you've told your insurance company about your arrangement?

Good point. What if the tenant burns it down?!

[Pugsey]

Vesuvius 996 said:

Pugsey said:

Setting the mortgage issue to one side for a mo., might it not be the case that you insurance is not valid at the moment - unless you've told your insurance company about your arrangement?

Good point. What if the tenant burns it down?!

Still positive as ever then matey!












But it happens.................