Permission to let has lapsed!

silvercar

You won't get a mortgage elsewhere whilst there is negative equity.

The only way to get a BTL mortgage would be from your current lender. It may be worth having the conversation with them. Ask them whether it is cheaper to have the 3% penalty on your existing mortgage arrangement or to convert to one of their BTL products.

Whereas you have let things slide a little, others keep things in the dark from day 1, so they should be sympathetic to you regularising the situation. Remind them of this if necessary. In answer to why you have passed the 3 year deadline, it is not possible to evict tenants to comply with dates imposed by lenders (not that it should be) but that is the reason why there are still tenants in the property past this point.

Bottom line is that you are paying the mortgage and that is what the lender wants to see.

Given that you can't sell with negative equity, can't change lenders, you are stuck with this long term, so moving to your current lenders BTL product may be the way to go.

ANDRUAFER

Thanks silver

That's a good idea about saying I can't evict tenants to comply with their 3 year rule - it's true isn't it? My tenant has been there the whole time and is generally ok.

I guess I will have to try and persuade them to let me switch to a BTL - my fear is that they will try to backdate it for the lapsed 13 months:/
People I know in my position are telling me to stop stressing and rune with it, they'll never know etc, but it's bothering me. I have a 17.5% equity loan on the house as well which means that when I do finally sell, I will owe the homebuy agent 17.5 % of whatever the house sells for, which complicates matters further. <sigh>

tiger_eyes

Not to pile more stress on this situation but since people sometimes don't realise this is necessary - just checking you're declaring the rental income and paying income tax on it.

ANDRUAFER

Oh crap:-/ I'm not making any money though?

ANDRUAFER

If I apply for a new consent to let and say that I've been living there again last year, could they gain access to electoral rolls and all that to prove I wasn't?

Pixie5740

mcauley wrote: »

Oh crap:-/ I'm not making any money though?

It doesn't matter. You're supposed to inform HMRC when you start letting out the property.

https://www.gov.uk/renting-out-a-property/paying-tax

mcauley wrote: »

If I apply for a new consent to let and say that I've been living there again last year, could they gain access to electoral rolls and all that to prove I wasn't?

A quick credit check would highlight that you are not on the electoral register at the rental property address.

Do you have a postal redirect? If not then the tenant might just "return to sender" any post that arrives for you including Nationwide mortgage statements.

AndyT678

mcauley wrote: »

Oh crap:-/ I'm not making any money though?

You might be!

Is your current mortgage repayment? If so you can only deduct the interest element from the rental income to calculate your profit not the whole mortgage payment.

lovinituk

mcauley wrote: »

Oh crap:-/ I'm not making any money though?

Only the interest part of the mortgage payment can be claimed as an expense for tax purposes and then any expenses occurred in the up keep of the flat, insurances etc. Anything from the rent payment that exceeds the interest only part of the mortgage payment and additional expenses is classed as income. You should be declaring this every year on a self assessment tax return and for child/working tax credits if you claim those too.

Nationwide don't offer BTL mortgages and their commercial arm, UCB Home Loans, have not been taking on any new BTL mortgages for a while now.

Annie1960

mcauley wrote: »

Oh crap:-/ I'm not making any money though?

It is irrelevant whether you are making a profit or not. You still need to declare the financials to HMRC.

If you are making a loss, perhaps you are due a tax refund?

http://www.hmrc.gov.uk/startingup/help-support.htm


Here is a link to the HMRC website for new businesses. They are very helpful.

ANDRUAFER

Thanks everyone. I'll investigate the tax thing ASAP:/

So if nationwide aren't taking on any BTL - what do you think they'll do in my case? Just add on the 3%? That'll double my payments.

I have no idea why they told me I'd be paying this much extra when all other research I've found online since yesterday says that their consent to let charges are 1.5%? Can anyone shed any light on this?


My tenant would forward my mail I reckon. Apart from drying her laundry on the radiators and causing damp patches and letting the garden go to !!!!, she seems ok.