Mortgage on property that my parents live in

danedin

I recently bought my parents' house (they still live in it and don't pay any rent) and lately I re-mortgaged with Santander through an IFA.

My IFA arranged everything and all documentation was sent to me at my parents' address.

Once everything had completed I completed a form sent with the completion documentation to change my correspondence address to my address (not my parents' address).

Yesterday I received a letter from Santander to ask why I have changed address as a condition of their mortgages is that you have to live in the property.

My question is, should I have a buy to let mortgage even although it's my immediate family who live in the property and they don't pay me any rent or have a rental agreement?

Thrugelmir

So presumably when asked the question whether any other adults were going to live in the property. You answered no on the application?

danedin

My IFA dealt with the application and she was aware that my parents were living there.

kingstreet

Not a buy to let, no.

You can purchase a property for family members to live in, but that should be disclosed to the lender at application.

System

Don't forget though that you will probably be classed as a landlord since somebody else is living in the house that you own.

Gas Safety Certificate etc.

Thrugelmir

danedin wrote: »

My IFA dealt with the application and she was aware that my parents were living there.

There's no passing the buck. As you signed the declaration at the bottom of the mortgage application form. So the responsibility lies with you in this regard.

Much depends on how Santander view the situation as to the outcome. Whether other material omissions or discrepancies were made in the application. As at worst there'll be considering whether fraud has been committed.

danedin

Thanks for the advice. I called them and they were quite happy to update their records as long as the property was insured in my name and my immediate family were in permanent residence.

ch3101

You say that you living there is a condition of the mortgage...
That could be a problem, whether they wish to cancel the mortgage or just as you for a fee, who knows.

EDIT
never mind, started wiriting this before your last post

CLAPTON

I trust you obtained appropriate tax advice about the effects of buying your parents house.