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Buy TO Let New Regulated Problem
awhitey
Posts: 14 Forumite
Hi can anyone help I have lived in a property owned by my parents with a small mortgage on for the past 8 years we have an assured shorthold tenancy agreement in place and I pay the current rent I get somewhere to live and they earn an extra income all above board with tax returns until we went to renew with the mortgage works for another three years my parents are 76 and 84 however this was not the problem the problem is that we are related. Can anyone help they will not renew the mortgage and it is due to expire totally in July. It wil make me my adult son and dog homeless and my parents will not have the extra income. Is there anything we can do ?? My parents do not have the funds to pay off the mortgage or is the another way we can keep the property Thank you
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Comments
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Remortgage to another provider and don't tell them you live there.
It's classed as a regulated mortgage if a family member live in the property so would need a residential mortgage not a BTL. Can't they transfer the house to you?0 -
This isnt the new rules, there has always been an issue with the owners letting the property to family.
There are a couple of lenders who may consider it but literally only a couple. You need to speak to a broker or getting doing the research yourself. None of the high street leders will do it.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What about when they ask if the property be let to a family member?Remortgage to another provider and don't tell them you live there.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What about when they ask if the property be let to a family member?
Presumably that's the time when you fib and the Lender does not pick it up on their searches.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
And then prey for the next 8 years they do not find out and call in the loan?Presumably that's the time when you fib and the Lender does not pick it up on their searches.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Presumably that's the time when you fib and the Lender does not pick it up on their searches.
They are only likely to find out if you share a surname. Lenders don't generally research family trees.
That said, it is up to you if you wish to obscure the truth.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Could you take out a mortgage and buy the percentage required?0
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They are only likely to find out if you share a surname. Lenders don't generally research family trees.
That said, it is up to you if you wish to obscure the truth.
But if they find out and call in the loan, that could leave an elderly couple worrying about something they should not be worrying about. Even if they do not find out, it could be playing on the back of their mind which is not really fair to put that on your parents is it.
Surely it is easier to speak to a broker and do the job correctly. Nobody has any concerns then.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
They are not comfortable transfering the house to one person as there will be other beneficiaries but they want an income from the rental of the house if they get a residential mortgage at there age 74 and 82 it would be repayment and a lot higher than interest only. It seems we are in a lose lose unless there is another way of borrow 100k0
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