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Can I live in my buy to let for three months?
SarEDA
Posts: 3 Newbie
I am releasing equity from my property by putting a buy to let mortgage on it - the equity will be used to fund a deposit on second property. The second property requires full renovation - can I live in the buy to let property temporarily for three months whilst the new place is renovated?
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Comments
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Legally NO !0
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The first issue is that obtaining the buy-to-let mortgage in order to immediately live in the property would be a breach of the mortgage conditions. Without declaring to the lender that this is your intention it could be classed as 'fraud' obtaining money by deception. Given that this is a temporary situation, you may get the agreement of the lender, if for no other reason than the other option would be that you have hotel costs for the time otherwise. It may be easier to ask the lender to release some equity and keep it as a residential mortgage until the time you want to move out.
The other consideration is insurance. BTL insurance for a property let to tenants is a different animal and I'm not sure you can reside in the property on such an insurance (adnd remain covered).I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, 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 -
Ask the lender concerned?I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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I don't think it is illegal (per the first response), but agree with the following two responses that it could breach mortgage lenders and insurers t&c's.
In my own experience, the insurance is a bit of a minefield and keeping insurers informed will be important, however some insurers will allow a shortish period of owner occupation (you'll probably end up being charged a fee extra fees and admin charges). Most insurers will even want to be informed when your buy-to-let is vacant (let alone owner occupied).
One thought I would have though is, when you talk about living in your buy-to-let property, what does living in/occupying actually mean? Is it where the post is delivered, is it where you spend all/the majority/some of nights? What if you spend some nights in each and get your post delivered to your residential mortgaged property?0 -
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