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Potentially sticky situation
financegirl
Posts: 265 Forumite
Hi there,
have just posted this in the mortgages section but thought i would put it in this section too as some of the issues overlap.
Have a buy to let property with my partner that we bought three months ago - everything on that front is fine. We are going to the tax office this week to speak to someone about our self assessment from and have kept all our receipts for our gas certificates, etc so we can submit them.
i have my own property and have now been seconded in my job to another part of the UK. I want to rent to this property out as i'm finding it too tiring to come home every weekend just to stay there for one night before I have to come back to my rented property. I need to tell my mortgage company (halifax) that i am renting it out and have some questions..
1) Will halifax let me do this under my current mortgage terms and conditions or will they make me change to a buy to let mortgage?
2) My 2 year fixed mortgage on my property is due to end in 6 months time - if halifax do let me rent it out under my current mortgage, what will happend when i want to re-mortgage, will i then have to go into a buy to let with another lender (i want to avoid this) but surely lenders don't let you do residentials when they know you won't be living there.
3) I may want to move back into the property in 12 months time, when my secondment ends but by then will have moved onto a new mortgage so how do you go back to living in the property after renting it out.
4) Tax, how would the tax situation work for the residential property and would i have to then pay CGT when i sell it becasue i haven't lived there.
5) Also, have read about nominating property as your main residence what does that mean?
Sorry for so many questions - thanks in advance, a slightly panicking finance girl
have just posted this in the mortgages section but thought i would put it in this section too as some of the issues overlap.
Have a buy to let property with my partner that we bought three months ago - everything on that front is fine. We are going to the tax office this week to speak to someone about our self assessment from and have kept all our receipts for our gas certificates, etc so we can submit them.
i have my own property and have now been seconded in my job to another part of the UK. I want to rent to this property out as i'm finding it too tiring to come home every weekend just to stay there for one night before I have to come back to my rented property. I need to tell my mortgage company (halifax) that i am renting it out and have some questions..
1) Will halifax let me do this under my current mortgage terms and conditions or will they make me change to a buy to let mortgage?
2) My 2 year fixed mortgage on my property is due to end in 6 months time - if halifax do let me rent it out under my current mortgage, what will happend when i want to re-mortgage, will i then have to go into a buy to let with another lender (i want to avoid this) but surely lenders don't let you do residentials when they know you won't be living there.
3) I may want to move back into the property in 12 months time, when my secondment ends but by then will have moved onto a new mortgage so how do you go back to living in the property after renting it out.
4) Tax, how would the tax situation work for the residential property and would i have to then pay CGT when i sell it becasue i haven't lived there.
5) Also, have read about nominating property as your main residence what does that mean?
Sorry for so many questions - thanks in advance, a slightly panicking finance girl
0
Comments
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1. Ask the Halifax, they may let you for a fee, or change to a BTL.
2. Nothing. you can stay with Halifax or you are free to re-mortgage with anyone.
3. Have a 6 month term with the tenant.
4. The tax situation is the same. The rules on CGT are complicated in this case, not sure.
5. Nominate the more expensive house, sell and pay the CGT on the cheapest.0 -
Hi David,
on question 2 if halifax give me the consent to lease, and then i leave them when the fixed term ends will i still be able to go for another residential mortgage with another mortgage provider. basically what i;m trying to say is what mortgage companies let you remortgage with them with a residential mortgage but allow you to let it out without having to move to a buy to let mortgage? I don't want to be stuck with a buy to let for 2 years when i'll probably be back in it within a year!
q5 - how do you nominate a property?0 -
If you have a BLT mortage you can still live in the house. There isnt much if any difference in the mortgage rates.0
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Hi
Most mortgage companies will give you consent to let the property for 6 months to 2 years without changing the terms of your mortage.
I have one with The Wollwich, they asked me to pay £100 for the consent and they've kept me on my fixed rate. The criteria to get consent were that the the mortgage repaymentd were not in arrears, the anticipated rent would cover the mortage repayment and the building insurance. Another condition is that you will come back to live in that property in the future. Oh and you can't rent to DSS or university.
Pretty straightforward stuff really.
Now for the rest of your questions, I wouldn't have a clue. Ask Halifax when you ring them, they'll tell you what they do for someone with a tenant for 6 months and wanting to re-mortgage the property with them. That might give you an idea on what is likely to happen.
I am in just the same situation as you at the mo. I have been sent away and decided to rent out my property for the time being.
Good luck0 -
still don't get it...help!!! 0 -
BLT = bacon/lettuce/tomato (sandwich)
BTL = Buy to Let
Just a simple slip of the keyboardRetired in 2015.
Moved to Ireland September 20170 -
:rotfl: :rotfl: :rotfl: thanks - can you believe people have the cheek to say i can be a dumb blonde!0
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