Only myself to blame but please advise!

Jamdough

I've got myself in a right pickle and don't know how to get out of it.

Bought a flat 8 years ago. All fine so far.

• Decided to move in with new partner on trial basis and let out my flat. That was 3 years ago - temp basis became permanent arrangement. Flat has been let out since then.
• I asked mortgage lender for permission to let, and my local branch agreed it, but then head office said they had no record, etc. Long and short is I didn't bother after that as they were going to put me on a BTL so I just told them I didn't want to let.
• Did tell insurance co property is rented out (insurance and mortgage both with same high street lended but obviously no cross-referencing between the 2 depts!)
• Never went on council tax or electoral roll at partner's property cos didn't want to have it as official address
• Changed bank account and everything else to new address

But now:

• Splitting up with partner - want to sell old property and buy somewhere closer to work.
• Current tenants have offered to buy but feel I have to say no, as they will be seeking a mortgage, using the rental address as their own address so what if my current mortgage lender finds out?
• Alternatively, I move back into my place and go back on CT register & electoral roll etc but then they're going to ask where I've been for last 4 years.

Basically, I don't know now how to put things straight and am really worried. I KNOW I'VE BEEN STUPID but what is best damage limitation strategy now, before I get into trouble with mortgage lender, council tax and anyone else? What to do about credit record and different addresses? Don't know how to get out of situation I've now made for myself. Any advice gratefully received.

jackomdj

I think you are worrying needlessly. Sell to the people renting, I don't think your mortgage co will ask questions.

You are lucky to have a buyer in this climate so take it!

Jamdough

jackomdj wrote: »

I think you are worrying needlessly. Sell to the people renting, I don't think your mortgage co will ask questions.

You are lucky to have a buyer in this climate so take it!

Thankyou jackomdj - I have got myself in a right tizzy and I know I'm probably being paranoid!

Emmzi

electroral roll not so important but are you saying you have been evading council tax? I think you need to come clean on that one now.

Jamdough

Emmzi wrote: »

electroral roll not so important but are you saying you have been evading council tax? I think you need to come clean on that one now.

I didn't intend to stay at my partner's for more than a few months so didn't want to make things official by putting my name on the CT register or ER. But then months became years and then I thought I'd get in trouble if I drew attention to it by telling the council how long I'd been there. So my partner has been getting his 25% discount, yes.

tbs624

Jamdough wrote: »

.... So my partner has been getting his 25% discount, yes.

..so it's not just you that has some explaining to do. You may think it best to talk to the CT office and sort it before they check things out for themselves.

Have you checked your own credit records at Experian, Equifax and CallCredit?

Next one, have you been declaring this rental income to HMRC? It is irrelevant if you have not actually made a profit, the income still has to be notified to them.

DannyboyMidlands

Mortgage lender? I hope you get into trouble with HMRC. I don't like paying additional taxes to cover those who don't.

lincroft1710

As the Council Taxpayer, it was your partner who should have informed the council that he was no longer entitled to the 25% Single Person Discount. So he is the one who will be in trouble with them.

franklee

Presumably the tenants have bank accounts and savings? If they've been moving their savings about to get good interest rates etc. then chances are they will be on the electoral role at their home (your flat) as this makes opening accounts easier. Also they will have been paying council tax for the flat, utility bills etc. They will apply for a mortgage using that address if they go on to buy elsewhere anyway, you are usually asked for the last five years of addresses or so. I don't think they can have lived there without leaving a trail all over the place. Not to mention they could get annoyed if it looks like they are going to lose a home they would rather buy and so could tell.

Also lenders are waking up to accidental landlords so insurance cross referencing may be done.

You might get a letter like this:
http://www.landlordzone.co.uk/forums/showthread.php?46824-Letter-from-my-Mortgage-Lender

The fees to catch up may not be that much, I' guess they will cost less than losing the tenant as a good buyer would do. Don't forget that you would then have a void during selling, estate agent's fees etc.

Perhaps now is a good time to get it all above board?

Soot2006

Sell it to the tenants, deal with any problems as they arise - expect fines and back taxes, pay them from the profit of the sale ... Don't do it again.