From Residential to Buy To Let

Martins_Disciple

Hi all,
After 8 years of marriage and 7yrs living at this address with a joint mortgage, my wife & I are separating. I am remaining here and starting a new Buy To Let mortgage, paying off my wife, becoming sole owner & landlord.
Once the contract exchange is complete at the end of this month, I plan to begin relatively small house improvements, whilst living at the property. Then looking for a tenant, moving out and looking for a new home (living at parents in the interim).
I believed that I would be afforded time to remain at this property for a short period of time to "sort things out", but am now not so sure. I believe I may be afforded days, if that, before I need to move out.
Add to this the fact that I plan to care for my two children, who are under 8 years old, on a 50/50 basis whilst this transfer takes place and things are beginning to confuse.
Obviously I need to present the house insurance docs before completion of contracts can go ahead. But what house/contents insurance do I need to cover the fact that myself and the children may live here for some weeks, if allowed. Also, is there insurance that can cover this situation and the eventual requirements I need to have as a Landlord?
If a tenant is not taken on immediately, can I stay here at all anyway. Obviously living with my parents if this house is vacant seems crazy from my own perspective.
Can I rent to someone who allows me to stay here? Would this be possible, legal and covered by insurance? Could I care for my children under this roof in that situation.
With each passing day, new questions arise and I need to be exchanging contracts in weeks.
As things stand, I am confused and worried about legalities and the situation with my children, in that they must be 100% my concern and I cannot have the "other half" believing that their welfare is under threat, as an insurance issue, not of course their general safety.
Any advice on the legal situation and the insurance I require would be gratefully received!

G_M

You can either get a Buy to Let mortgage or a Residential mortgage.

As you rightly say, there are probs with each:

With a BTL, sometimes you cannot live there.This is something to discuss/check with the lender before you take out the mortgage.

With a Residential mortgage, you can live there, and later apply for Consent To Let, but this is unlikely to be agreed if the lender believesyou purchased originally with the intention of letting. So applying within the first 6 months or so is a no-no.

I don't see much issue with option 1 though. Since the lender's risk is less if you live there, (andthe cost of a BTL is higher) they are hardly likely to repossess if you live there for 6 months or so...

Re insurance, shop around for a policy that will not have high admin fees/penalties to cancel. Pay monthly as opposed toa year up front, Then you can easily switch later to landlord's insurance.

Can rent to someone who allows you to stay there? ....!
Well, in theory, you could rent to a tenant, then become their lodger!

Or you could live there, and take them in as a lodger (not a tenant)

Now read this, and thencomeback with Qs!:

New Landlords (information for new or prospective landlords)