Legal or Not?

garetham

Hi All

Im emigrating to Oz next week and have been unable to sell my house.

intend to rent it out and wait for the property market to make its mind.

We have a mortgage with If, Now they do not allow Buy to Lets, and i am unable to get another Buy to Let Mortgage due to the property being close to neg equity.

I have enough money in my off set account with them to pay the mortgage for a few years, but all my money will be gone,

If i let the property out and do not tell them, and make sure that there is always money for rent and the property is well cared for,

What can they do to find out?

What will they do if they find out?

I have no other option but to do this, the only other option os to hand the keys back but i do not want to do that.

Can some body give me any advice please.

Many thanks

G

feisty1

Well you know it is not legal, you borrowed the money on the basis this was to purchase a property for residential use, so it is pointless giving any "advice".
Regarding them finding out, their are various ways this could happen......being in breach of the terms of your mortgage could lead to foreclosure. .......In addition to this, you are likely to incur a liabiity to HMRC.........

garetham

Thanks for the reply.


I have owned the house for 6 years, i did not buy the house to let out, its just my circumstance.

I do not know of any other way out of this apart from giving the keys back.

Im sure that other people have people have done this and was looking for advice from them.

I understand those who take the moral high ground but im am trying to ensure that the mortgage gets paid until i can sell.

Any advice

G

beecher

I thought you just needed permission to let rather than a BTL mortgage? Maybe your lender would allow you to let it out if you ask them, though the negative equity might be an issue.

If you dont' get permission, then your insurance might be invalid. Is it possible to keep the house up for sale - my friend sold her house while living in Finland as the rent wasn't paying the mortgage anymore. If you cut the price surely it'd sell?

Rick62

Are you sure they won't give consent to let? Even if you tell them that you are just going abroad for 2 or 3 years and will be returning to the property after?

Robert_Sterling_3

garetham wrote: »

I have no other option but to do this, the only other option os to hand the keys back.

Rather a conradictory statement.

Another option could have been to sort this out before arranging to move to Australia.

Robert_Sterling_3

Rick62 wrote: »

Are you sure they won't give consent to let? Even if you tell them that you are just going abroad for 2 or 3 years and will be returning to the property after?

This looks like a Mortgage Adviser advising on sharp practices. :eek:

feisty1

Robert_Sterling wrote: »

This looks like a Mortgage Adviser advising on sharp practices. :eek:

sharp practices!!! More like encouraging deception!

You can understand why Posters use the term Lie to Buy.

Wonder how Rick62's compliance would view this "suggestion"

Rick62

No, there is a difference between Buy to Let, where you buy a house with the intent to let it out, and asking for a consent to let, where you are letting out your own home because your circumstances have changed.

Many lenders do not do Buy to Let but will give a consent to let. Gareth has said his lender do not do Buy to let, we don't know if he has asked about a consent. There is nothing sharp about that?

rsykes2000

Rick62 wrote: »

No, there is a difference between Buy to Let, where you buy a house with the intent to let it out, and asking for a consent to let, where you are letting out your own home because your circumstances have changed.

Many lenders do not do Buy to Let but will give a consent to let. Gareth has said his lender do not do Buy to let, we don't know if he has asked about a consent. There is nothing sharp about that?

In the first post, the OP said he was emigrating, which to most people means a permanent move overseas. Then you suggested to tell the mortgage company that he will be returning in 2-3 years. That's what people picked up on, you seeming to suggest he bends the truth.

Rick62

That will teach me to post too quickly! No one knows what the future holds, the majority of people who emigrate do actually come back. Of couse he should not say he is definately coming back in two years if actually he is definately not.

The key point I was trying to make is it is not a Buy to Let property, he bought it to live in and now his circumstance have changed and what he needs is not a Buy to Let mortgage, but Consent to Let from his current lender. I am sure his current lender would rather have their loan serviced rather than have a repossession.