Selling your house to yourself

vas_2

Hi All,

I have heard about selling your house to yourself on a buy to let mortgage then renting. Has anyone done this and if so do you think its a good idea.

Thanks
vas

lynzpower

I dont know where youve heard this from!

I also expect that if you sold it to yourself, youd have to pay more than what you paid for it in the first place

and a BTL mortgage usually needs the landlord ( ie you) to ensure that your tenant ( ie you) pays 125% of the mortgage on the property.

Surely this is a wind up or someone is having you on

Uncle_Fester_2

What do you mean sell it to yourself?

vas_2

Not a wind up. Had heard of it and then my mum said she heard someone talking about it on LBC radio the other day. I wouldn't live in it I would rent it out and buy another property.

Vas

nick74

There's nothing to stop you taking a btl mortgage on your current house then letting it, and moving somewhere else yourself, but why would you need to "sell it to yourself"?
Is this a new government ploy to get people to pay stamp duty for no reason whatsoever?

djm1972

Hi,

This is perfectly feasible, but it's not so much "selling your house to yourself", rather you remortgage onto a Buy-To-Let product.

However, you will almost certainly need another address before applying for the remortgage, as you are not allowed to live in the property that is mortgaged under buy-to-let conditions.

This is for the simple reason that a buy-to-let mortgage is underwritten on the basis that you will have rent paying tenants, and to this end part of the underwriting process for a BTL mortgage is confirmation of your address post-completion.

scrummy_mummy_2

I think the OP is referring to a little known product which is a let to buy mortgage...not a buy to let....
On this type of mortgage you let your current home AND buy another one.
http://www.alanboswell.com/mortgages/let_to_buy.aspx

We looked at doing it 6 years ago but I bottled it just before exchange with the thought of all that personal debt and the possibility I could loose BOTH homes if it all went wrong!

lynzpower

scrummy_mummy wrote: »

I think the OP is referring to a little known product which is a let to buy mortgage...not a buy to let....
On this type of mortgage you let your current home AND buy another one.
http://www.alanboswell.com/mortgages/let_to_buy.aspx

We looked at doing it 6 years ago but I bottled it just before exchange with the thought of all that personal debt and the possibility I could loose BOTH homes if it all went wrong!

a let to buy tho, is fairly popular now, theres at least 3 people a day here asking about them! I didnt think it owuld be classed as "selling it to yourself"

Ems*Honie

I did that sort of, but I have a buy to let mortgage and a normal mortgage, I just remortgaged one as buy to let and bought the other. My mortgage company allowed us to live in the buy to let whilst we completed on the res' mortgage. I let to my sister on a long term basis, I wouldn't do it otherwise, not enough return for the risk imo

vas_2

Thanks for all the comments. I didn't know the correct terminology but thanks to those who understood what I meant.