A word of caution if you have rental properties

JPS29

Hi all,

Just thought I would share with you what has happened to me at one of the properties I rent out. The regulars on here will know I went BR in June and have 2 rental properties. It's a good job I am very friendly with one of my tenants as one of the things I didn't think would happen is that the land registry would send a letter to my rented property (albeit it was addressed to my partner) restricting the sale of the property as the OR has my BI following my BR.

Now I know that the letter was addressed to my other half and not the tenant but Im sure that there are "instances" where other people may have opened this mail.

Imagine a normal tenant finding out that their LL was BR, could lead to them doubting the security of their home and worst case scenario leaving at the earliest opportunity.

Just thought it worth sharing with you all.

Richard_S

Hi ITBS,

Thanks for that, it just confirms that as a country we've still got a long way to go before the prejudices of the past are forgotten.

We were at a "dinner party" the other night, and a period drama was on the T.V. Two of the leading characters were in a debtors prison; I think we were the only ones comfortable with the scenario.:rolleyes: :rolleyes:

Regards

Rich

silvercar

Correctly speaking, on the deeds of your rental property you should have registered your home address rather than the property address. It does happen frequently that people move, rent out their former home and fail to register their new address with the land registry. (Particularly if they still have a residential mortgage on the property;)).

Apart from the situation you describe, it reduces the risk of dishonest tenants taking out secured loans in the name of the owners.

JPS29

Hi Rich/Silvercar.

The property is on a legitimate BTL mortgage so I would have assumed that the solicitors would have registered this properly??

BUT, this was a former home of ours so maybe thats where the confusion came from???

silvercar

InTheBrownStuff wrote: »

Hi Rich/Silvercar.

The property is on a legitimate BTL mortgage so I would have assumed that the solicitors would have registered this properly??

BUT, this was a former home of ours so maybe thats where the confusion came from???

Interesting point.

When you first buy a property on a residential mortgage the address of the owners is registered as the address of the property.

If you buy a property as a BTL the address of the owners will be registered as the owner's residential address.

When you remortgage what was your home to a BTL mortgage with the same mortgage lender the deeds won't change, so unless you notify land registry yourself, your residential address won't show on the deeds.

If you remortgage with a different lender, then at the same time as the new lender's charge on the property is registered, the owner's residential address will be registered (in theory).

I'm glad you raised this point, because it has implications for tenants trying to check whether their landlord has the correct mortgage.