Can you rent a property out without a buy to let mortgage?

jeec_2

Of course i have. However after several discussions with the mortgage advisor at the estate agents regarding my intentions i thought no more on the matter.

mlz1413

jeec wrote: »

If I still live at home (with parents), and have bought a house, can I rent this out to a tennant legally and above board? The mortgage advisor said this is ok, seen as its the only house I own. Could you confirm this for me?

Thanks

Who does the mortgage advisor work for?
Did MA really sell you a residental mortgage when you had said you were buying to let out? (If so I would report him for misconduct!)
Or did you change your mind part way through getting mortgage?
It is possible that lenders will give consent to let on a residental mortgage so is that maybe what was suggested?

Do you have the house and mortgage yet or is this all in the offering / signing up stages? Has the house been surveyed by the lender yet?

jeec_2

I do not have the house yet, all the solicitors work is done, and the mortgage has gone through. I have yet to sign for it. Howvere i have been told it is very near completion.
I have not chnaged my mind this has been the plan the whole time, and there has been no secret.
I have been under the impression that as this was my first house, (and only house) that a buy to let mortgage would not be needed, however on the next property i wuld need a buy to let mortgage and need the 35 / 40 % deposit etc,

jeec_2

mlz1413 wrote: »

Who does the mortgage advisor work for?

The mortgage advison works for countrywide, working through barestowe eves which is the estate agents. She basically set eveything up for us, insurance, the mortgage etc.

silvercar

Get the mortgage advisor to put it in writing.

To apply for a residential mortgage with the intention of letting the property is fraud, obtaining money by deception.

If you did live in the property then change your mind, move back home and rent the place out, that would not be fraud, but would be a breach of your mortgage terms and conditions.

If you do this, there is always the risk that your tenants will tell your lender (or return post to the lender marked "gone away".)

starnac

through experience i have found that mortgage companies will grant consent to let (for a fee) if your circumstances have changed. however they won't let it run indeffinately. in my personal situation we had consent to let until our fixed rate ended and then had to get a btl.

a 'btl' is exactly what it says and so is a 'residential' mortgage. without wanting to state the obvious but you 'reside' in a house under a residential mortgage. you 'let out' a house under a buy to let.

can't understand why your ma would advise you to get a residential mortgage when you told them you wanted an investment. i would look into it. as lodger said there are also other legal and tax issues with btl all of which you should have researched before you started buying the property.

hope you manage to sort it out

garyd

This is a terrific forum site and I have received extremely good advice and help. Such a wonderful pool of knowledge and experience.
However, some of these responses are totally uncalled for!
The OP has asked for advice based on what he was told.
How about stepping back before clicking 'submit reply' and reading through?
Some of us are NOT professional landlords or FA's and are/were just doing what we assume, niavely, to be okay. Something goes wrong and we start to panic, looking for somewhere to turn. We can't believe our luck in finding this site, ask a question and are berated and criticised for a wrong doing that we are/were totally unaware we are/were committing.
Chiil out, some of you good folks and think that maybe the OP saying "can anybody help or advise?" might mean just what it says.
I'll get me coat.

silvercar

Outlining the risks in going ahead with a course of action is advice.

franklee

jeec, You may want to read this:

Consent to Lease - stuck between a rock and a hard place!
http://forums.moneysavingexpert.com/showthread.html?t=1835487

And this:

RENTING? Check your LL has permission to let that property. - Consent to Let
http://forums.moneysavingexpert.com/showthread.html?t=1377883

HTH

bingibongi

jeec wrote: »

I do not have the house yet, all the solicitors work is done, and the mortgage has gone through. I have yet to sign for it. Howvere i have been told it is very near completion.
I have not chnaged my mind this has been the plan the whole time, and there has been no secret.
I have been under the impression that as this was my first house, (and only house) that a buy to let mortgage would not be needed, however on the next property i wuld need a buy to let mortgage and need the 35 / 40 % deposit etc,

Priceless.

Did you read your mortgage application form - there is usually a question asking whether the property you are buying is going to be your main house - what did you reply to that ?

Did your solicitor send you a form asking who would be living at the property ?

Your mortgage advisor is wrong and you should telephone her and ask for an explanation.