HELP! Converting Residential mortgage to Buy-To-Let?

lightspeed

silvercar wrote:

they way to find out your lenders opinion is to ask them!

preface your comments with, "thinking of...", "possibility of..." etc so you have room to manouvre.

Hi

I was going to but my IFA advised against this because they may not like it. I have been told to approach them regarding a transfer of equity, which i have done and am awaiting the application forms. As this may be rejected, i can then try and use the guarantor option and if that fails finally ask about buy to let.

I am constantly getting told one by one person then another by someone else and dont want to jeopodise my chances of keeping the house.

silvercar

ask without giving your name. It is acceptable to ask for information on a no name basis. They may fob you off and say the require further info or they may give you an answer.

ossie1_2

MarkyMarkD wrote:

A&L will consent to letting on payment of a fee; you won't have to change mortgage products to a BTL.

They will consider the transfer of equity on an affordability basis, not an income multiple one, so you may be able to achieve what you need - it depends on your outgoings.

If your partner wants out and isn't interested in the property, then arguably the price you pay her should reflect that - she would be triggering the repayment penalties on the loan, for example, if she made you redeem early, so she should bear the full amount of those even though you may not actually incur them because you are choosing to keep the property and the loan yourself.

Similarly, she should bear the full amount of any selling costs (estate agency fees etc) even though you aren't selling.

At the end of the day, it's her who's messing up your joint plans for the future and I don't see why you should suffer financially for that. Or more to the point, I don't see that she should benefit from value the property has gained (without taking any costs) when it's her leaving you.

In agreement with the initial comments as I worked for A & L. no probs with btl issues, consents and products etc, however transfer of equity would depend entirely on affordability calculation when you apply to buy your partner out. You would need to complete a further loan application and transfer of equity form ( contact local branch is easiest option ) and wait for the further loan department's reply.

Regarding the costs I would agree that in an ideal world you shouldnt pay any penalties or incur any of the costs as your partner wishes to leave but legally I believe these would have to be shared equally if you cant afford to buy her out. Sorry.

ossie1_2

lightspeed wrote:

Hi

I was going to but my IFA advised against this because they may not like it. I have been told to approach them regarding a transfer of equity, which i have done and am awaiting the application forms. As this may be rejected, i can then try and use the guarantor option and if that fails finally ask about buy to let.

I am constantly getting told one by one person then another by someone else and dont want to jeopodise my chances of keeping the house.

If you want some help I know a lot of people at A & L in the right departments and can probably give you some assistance if you would like it. If so, post a note on here again and I will pick it up later ( going out now )

lightspeed

Thank you very much.

I have probably had more useful information this afternoon than i have had in the past 3 weeks since it happened. Having looked at A & L online calculators i could, at a max, borrow 123K. This figure is just shy of the 139K (property valued at 165K unfinished, 180K finished) that i would need. Hopefully the fact that i have been paying the mortgage from my account, i have no credit/loans and "should" have an excellent credit rating will work in my favour.

I personal think that if buy to let it available to me, this would allow me sometime to save, save and save while living at home with my mother and knock that mortgage down to a more affordable level.

The transfer of equity form was sent to the A & L last week (friday i think) and i am still yet to receive the mortgage application form. I will fill this in as soon as i receive it and keep you posted with the outcome.

I really appreciate your advice and will post again if i need some assistance.

Thank you