Btl brains required

Sprintz

If I purchased a 2 bed property (I would live in one room), whilst the other I intended to look for a lodger (charging just below the taxable annual amount)


... do I need to state these intentions from the beginning that I would like to get a lodger (not tenant).



Would this be captured as a BTL or residential - since it is a lodger and not tenant?


...then say 2 months down the line I moved out and decided to take 2 tenants (charging them a lot more rent):

- Can the property be repossessed on these grounds?

- Can the Lender refuse to let this situation become essentially a BTL?


Thanks for any clarification


--> Oh I guess first question probably should be whether there is a difference between Tenant and Lodger :S

Cannon_Fodder

In such a short timescale, they would know you are playing a game to try and avoid BTL rates/fees.

If you were cleverer and left it 6 months or more, you might be allowed consent-to-let on a residential basis.

It will vary from lender to lender, what they would do for the 2 month timescale.

I suspect they would go for applying BTL rates, back-dated to inception of the mortgage, with fees/deposit requirements to be met etc.

Not heard of a repo in such circumstance, but a hardline attitude underwriter might consider it - or it might come to that if you couldn't stump up the deposit for correcting the basis of application.

If the BTL business model you have is profitable, why not just be up-front about wanting a BTL product - when the interest, and more, is paid by the tenants anyway?