Can I move into my BTL property whilst I try to sell it?

strawbs_

Hi,

Brand new to the site - I've found myself in a tricky situation and am hoping for some advice.

The key questions, to save you reading all the background, is this. Am I allowed to move into my buy-to-let property temporarily whilst I try to sell it...and whilst seeking employment? What fees and pain would be involved if I did have to switch from a BTL back to a residential mortgage?

Here is the context to my situation:

Due to a change in work location a few years ago I moved out of the house I had a mortgage on and rented a flat nearer my office. I switched my mortgage to a buy-to-let and got a tenant. So I became both a landlord and a tenant. The plan was to continue like this for a while and then sell the BTL property and buy a place nearer my office.

3 things have happened recently to scupper this plan – I lost my job, my tenant served notice and left, and my landlord served me notice (all unconnected). I have a month before I need to leave, but this means until I find another job I will struggle to get new rental accommodation as the landlord will want 6 months rent up front.

Moving into my BTL property for a while would save me having to pay rent and mortgage simultaneously. Plus, I think I have a better chance to sell it quickly while it is being lived in, and I can freshen it up while I'm there (previous tenant didn't leave it in a good state). I don't want another tenant anyway as I didn't want to wait 6 months before selling it.

I can't see anything conclusive in my mortgage documentation about this and the intent would clearly be to sell as I will put it straight on the market. Anyone got thoughts? The ideal scenario would be to get a job, sell my BTL and buy somewhere new at the same time!

Appreciate any help.

Kynthia

Hopefully someone who knows more than me will answer your query soon, perhaps one of the mortgage brokers. Or you could try posting this on the mortgages & endowments board. However I think someone asked a similar question recently and they were told the lender was unlikely to have a problem with it or require any additional fees or changes to the product as long as you'd been letting it out for decent amount of time. The lender is likely to have an issue if it looks like you got a BTL product when you wanted to reside there all along or you intend to live there for a significant period of time.

G_M

I can't see why not, but check with your insurer, and lender.

strawbs_

Kynthia wrote: »

Hopefully someone who knows more than me will answer your query soon, perhaps one of the mortgage brokers. Or you could try posting this on the mortgages & endowments board. However I think someone asked a similar question recently and they were told the lender was unlikely to have a problem with it or require any additional fees or changes to the product as long as you'd been letting it out for decent amount of time. The lender is likely to have an issue if it looks like you got a BTL product when you wanted to reside there all along or you intend to live there for a significant period of time.

Thanks Kynthia. I may post it on the other board as well then....I suppose it's the BTL product terms that it all hinges on so makes sense to try there.

But yeah, generally I'm hoping that the lender would show some common sense and see this is something I've been forced into.

fablanta

Couldn't you just let it to yourself?

Old_Git

as you are putting it up for sale is it really worth changing the mortgage to residential .change the insurance .If you opt for a residential mortgage I would think they would want proof of income and if your unemployed you dont have the income.

Annisele

I think moving in to the property is likely to be a breach of your mortgage terms and conditions. However - if your lender finds out, then I think the worst it is likely to do is call in the loan - which would mean you have to sell - which is what you're doing anyway.

(NB I don't think it's at all likely the lender would call in the loan, but in your particular circumstances I don't think it's all that bad as a worst-case-scenario. Even if they did do that, they'd give you time to sell - and they couldn't repossess without a court order).

kingstreet

Some lenders may have a problem with it, some won't.

Provided your intent at the outset was to let the property, you've done nothing wrong in applying for a BTL mortgage on a property which was to be let.