Living in my buy-to-let apartment

Weaxm90

Hi all, I’ve been using this forum for quite some time but never actually posted on it until now. I’m looking for some advice on a mortgage I just recently took out.

So I’ve just switched to a buy-to-let mortgage on an apartment I own and currently live in. At the same time, I was purchasing a new property (under a residential mortgage) with the intention of moving there next week.

Unfortunately the purchase has fallen through.

I’m now in a situation where I have about 2 months until I’m supposed to be moved out of the apartment that is now buy-to-let. I have arrangements for temporary accommodation so it’s not the end of the world, but I want to know the consequences of me staying in the apartment longer than the 90 days I was originally given.

This must happen from time to time, so I’m wondering whether banks are flexible with this and perhaps extend the deadline so that I can find another property to move to?

It's worth noting that I have no intention to stay in my apartment long-term, I just very much doubt I am going to find another property and complete the purchase within the 2 months I have left to get out.

Any advice would be greatly appreciated!

AnotherJoe

I can't see why they'd care. Are you saying they've actually given you an ultimatum you must move out by a certain date? Or is that just the expectation you set ?

Even if they did care by the time they knew you and told you you must move out, you would have moved anyway unless things go seriously wrong with your purchases. . I'd stay as you are. Otherwise it's akin to saying that as a landlord you cannot decide to live in one of your properties,should you need to for whatever reason.

silvercar

Otherwise it's akin to saying that as a landlord you cannot decide to live in one of your properties,should you need to for whatever reason.

That is generally a condition of a BTL mortgage. It stops people using the criteria for a BTL mortgage (rental income) to get the loan when their income wouldn't justify a residential mortgage.

In practice, I doubt the lender could do anything short term. By the time they took you to court to evict on the grounds you have breached a term of the mortgage, you will have sorted things out.

As your intention was to genuinely let the property I doubt you could be accused of obtaining the mortgage fraudulently.

This is the sort of question that could get the lender in a tizz, I would be inclined to not formally mention it at this point in time.

getmore4less

IF the plan it to let I would use the time to look for a quality tenant or even try to get a higher rent and utilize the alternative accommodation to avoid trying to time the move with getting a tenant and potentially having a void.

whatarethescores

As a bit of an aside, I'm assuming you haven't yet switched to buy-to-let / business insurance. If you have you may want to check with the insurer the length of time during the policy that owner occupation is allowed, as many of the policies do allow some owner occupation, but not for a prolonged period.

AnotherJoe

getmore4less wrote: »

IF the plan it to let I would use the time to look for a quality tenant or even try to get a higher rent and utilize the alternative accommodation to avoid trying to time the move with getting a tenant and potentially having a void.

Great idea, since you do say you do have alternative accom you can use, even if not ideal.

Weaxm90

Thanks for the quick replies! Just to clarify, the mortgage lender hasn't actually given us an ultimatum, I'm just aware that in the agreement it states the owner must not be living in the property after 90 days.

As some of you mentioned, it seems like it would take some time after the 90 days for the lender to take legal action. I'm sure my solicitor will advise against this, but the truth is that I DO intend on renting the property and it's just unfortunate that the sale of the house we were moving to has fallen through!

We are planning to start looking for another house straight away, so fingers crossed we can find somewhere and get it all wrapped in the coming months.