Buy to Lets x 2 (Does it mean double the costs)?

barneybeagle

Thanks to everyone.

Yea Holly, I meant the solicitors fees, estate agent fees, etc with regards setting up the buy to lets - thanks.

I think I quite understand it all now. Regarding the thanks button, it didn't show up when I was browsing then after I logged in and posted I noticed it (dumbo).

Cheers once again 5* to everyone.
bb

Yorkie1

BitterAndTwisted wrote: »

"So people that have residential mortgages and who rent them out from day 1 are breaking the law? If they have not informed the mortgage provider then, is this correct?"


No laws broken, it's purely a contractual matter and therefore civil not criminal. But they would be in breach of the terms of the loan. Which could precipitate the lander calling up the loan and demanding immediate payment, and for the borrower's insurance to be void. Not something I would be willing to risk.

Also note, that there is a great deal of information-exchange between banks, electoral register, insurance companies and the like. Anyone with a residential mortgage going into a commercial let is likely to be discovered ere long.

I hesitate to disagree with B&T, but IF the person has deliberately lied on their mortgage application, stating that it is to be their primary residence when they intend to let the property from the outset, then yes it is potentially a fraudulent application and thus a criminal offence / illegal.

somethingcorporate

Yorkie1 wrote: »

I hesitate to disagree with B&T, but IF the person has deliberately lied on their mortgage application, stating that it is to be their primary residence when they intend to let the property from the outset, then yes it is potentially a fraudulent application and thus a criminal offence / illegal.

And has been mentioned on a similar thread may lead to a fraud marker on their credit file which will be flagged any time they want to take out a credit or insurance product, which is no great thing!

holly_hobby

Yorkie1 wrote: »

I hesitate to disagree with B&T, but IF the person has deliberately lied on their mortgage application, stating that it is to be their primary residence when they intend to let the property from the outset, then yes it is potentially a fraudulent application and thus a criminal offence / illegal.

Yep you're absolutely on the money Yorks.

As discussed earlier, to actively seek a residential mge with the known intention to let on completion = fraudulent application (and upon lenders discovery the sandstorm that comes with it).

To initially seek and obtain a resi mge for the sole purpose of your primary residence, but then at a later date to subsequently let wout CTL = breach of mge t&cs.

Which could be cited as splitting hairs, but its the actual intention of the mortgagor, that will determine what action the lender may elect to take, including a CIFAS registration as also noted by SC.

TBH though, its usually the other way round i.e BTL submission as a backdoor Resi app - either way the ramifications as discussed apply.

H x