Moving out of my mortgaged property

Clairio_2

Good afternoon everybody :j

Just looking for a bit of advice. In 2000 i bought my parents house and made an agreement with them that they can stay there until they retire in 2007 (i pay mortgage, they pay bills). Last September i moved out and moved in with my boyfriend but i continue to pay the mortgage. I have informed everybody of my change of address apart from my mortgage lender as i was worried itwill cause problems if i'm not living in the property. Am i right or should i just let them know? If i don't change my details with them will it affect my credit rating?

Cheers in advance.

silvercar

there are tax implications of not living in the house. if you are out of it for more than 3 years you may have a capital gains tax liability. What is the plan for your parents retirement, are they moving out and you moving in?

You are meant to tell a lender if you no longer live at the property.

Clairio_2

Hi there, thanks for your reply.

The original plan was for them to move abroad and me to move back in but that's not happening now. As my dad has done alot of work on the house it seems a shame for them to move out so i'm happy for them to spend the rest of their days there as long as they can cover the rent, which wont be much. I did read (somewhere on this board) that i might have trouble getting a buy to let mortgage though as they are family members, not sure how true that is. It seemed like a good step for me at the time, now i'm worried about implications.

If i do have to have to pay a capital tax gains liability do you have any idea how much it is likely to be? Is it worked out as a percentage of what i own?

homer_j_3

The lender will need to know that you are not living there. Who is your mortgage with?

You may not necessarily need to get a buy to let mortgage, if you tell the lender that you want to let your property, they may agree to it on the basis that its not going to be a long term basis.

You have moved in with your boyfriend and do not want to sell the property until you are certain that the relationship is going to be lasting for example.

The lender may impose a loading on your mortgage interest rate and a small admin fee aswell as asking to see sight of a tennancy agreement etc.

If you let us know who your lender is, maybe we can tell you what your chances are likely to be or how you can deal with it.

Clairio_2

Hi Homer J! Thanks for your reply.

The lender is the halifax. My parents aren't paying any rent at the moment, my dad is due to retire in March 2008. My plans for then are to let them rent the house for as long as they like so it might not be so short term, however i guess i'll have to just cross that bridge when i come to it. Could you elaborate a little bit on the loading please?

I will ring them tonight and inform them of my new address.

Thanks