How easy and quickly is it to change to BTL?

Scully38

Hi,

I'm currently selling my house, twice it's fallen through because of problems with the people buying from me. One lost their finances, and the other lost their buyers. I've now had two offers, one 10k higher than the other, but i'm confused as to the chain.

Buyer one: Normal Process, the people have a buyer for their property, and having surveys done. (3 people in the chain including me).

Buyer two: The first person in the chain is changing to a buy to let and wants to get tennants in then buy my purchasers house (offer accepted). The second person in the chain have placed a good offer on my property.

My question is how does this work in terms of finance and completing. Is money released from the property where the people are changing to a buy to let, or are they just given a new mortgage? Also how long does it take to change over from a normal mortgage to a buy to let.

I'm confused as i'd not heard of anyone converting part way through their mortgage to buy another property, and is this a safer sale than Buyer 1's way.

I'm not very well at the moment, so want to move into my new property as quickly as possible and am not sure which is the safer option as I'm nervous given that twice i've been let down.

I wish we had Scotland's way of doing things...

kingstreet

You don't tell us enough, TBH.

They may simply be asking for consent to let, so they can let their property and buy again. In those circumstances they'd need to be able to fund their deposit from their savings.

If they are moving to another lender and raising funds to pay their deposit, it's like any other mortgage application and needs assessment, valuation, offer etc.

How long it might take is pure speculation. Typically four to eight weeks for the whole process to be completed.

Scully38

kingstreet wrote: »

You don't tell us enough, TBH.

They may simply be asking for consent to let, so they can let their property and buy again. In those circumstances they'd need to be able to fund their deposit from their savings.

If they are moving to another lender and raising funds to pay their deposit, it's like any other mortgage application and needs assessment, valuation, offer etc.

How long it might take is pure speculation. Typically four to eight weeks for the whole process to be completed.

Thanks, to be honest I don't know any more details other than what i've been given. I'm never moving agian...

abankerbutnotafatcat

As said - it could be a simple consent to let in which case (presuming the lenders are happy with the documention provided to them) it should take a few working days. Mine with NatWest was extremely simple.

If they are converting to a BTL mortgage for their existing borrowing (which NatWest didn't make me do) there will be the standard mortgage processing time on top of the above but shouldn't need a valuation so a week or two.

Once I had my consent to let I then applied for new borrowing against the, now rental, property which it appears your potential vendor may be doing. This will require a valuation so will take approximately the same time as any new mortgage application.

In my case, the whole process was extremely straightforward and I was ready to complete before the vendor was.