Seperated from Girlfriend

liamgallagher87

Hi all, im 23 and me and my Girlfriend of 4 years have just seperated.

We have a 2up 2down terrace house togethor with a 68thousand pounds left on the mortgage.

She is willing to sign the house all over to me and I would like to keep it as Im being told if i do sell it it would be hard to get back on the ladder in the future.

I plan on getting all the decorating finished and renting it out and moving back home with mum and dad. I want to travel OZ and asia etc and living at home means i could save 1300 a month.

For the mortgage to be solely in my name would I need to be re evaluated for it or is it a simple signature? Also would I need to have it changed to a BTL mortgage?

Thanks for any advice

mildred1978

liamgallagher87 wrote: »

For the mortgage to be solely in my name would I need to be re evaluated for it

You'd effectively be applying for a new mortgage. Your current mortgage may well have an early repayment charge you'd have to pay too.

liamgallagher87 wrote: »

or is it a simple signature?

No

liamgallagher87 wrote: »

Also would I need to have it changed to a BTL mortgage?

Possibly. Your lender may give you permission to let it on a temporary basis while you are travelling.

holly_hobby

Hi,

Sorry to hear about your separation ...... but will try to help with reqd info ...

Changing Mge to Single from Joint

This is called a tranfer of equity (TOE), to achieve this your lender will have to be satisfied that your sole income is sufficient to service the mortgage.

Unless you are also changing product there will be no early repayment charge to pay - but there may be an administration fee from the lender in effecting the TOE and you will also have sol fess circa £250 - £400.

If post TOE, you then elect to rent the property out, you shall have to obtain the lenders consent to let (CTL), normally this isn't an issue on a short term basis i.e 12 mths, but the lender does reserve the right to refuse your application.

Letting of property

If the lender provides their CTL, they will probably add a loading to your current interest rate, and there will usually be an admin fee, with a review period put in place.

If you rent the property out, you need to remember to pay inc tax on the (net of allowances) rental income, payable by annual self assessment.

You should effect any tenancy on an assured shorthold tenancy agreement (AST), and also make fianancial provision for repairs and maintenance, periods of no rental income (i.e no tenant), you may wish to consider employing the svcs of a rental agency (ARLA) to manage the let from top to toe for you - they will produce an invantory, tenants refs, deposit & rental collection, perodic property inspections, and other management processes. (shop round for best fees).

IF your lender refuses consent to let - and you are unemployed (i.e travelling) you will be unable to obtain a buy to let mortgage, apart from being a first time landlord (which causes probs in itself), all BTL lenders require the applicant to have a min earned income of circa 25k. (the only expception on earned income is if you are a portfolio landlord).

To rent your property out & becoming a landlord may presently seem like a good idea - but it can be fraut with problems both financially and emotionally - so please do carefully consider this when making your final decison.

I hope this helps and wish you well

Holly

purplelila-2007

You must let your lender know what you want to rent it out , there are all sorts of reprecussions if they find out youve done it without letting them know.

I came across this article recently - hope this helps.

http://www.dailymail.co.uk/money/experts/article-2029183/Can-I-rent-house-telling-mortgage-lender.html