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Switching from Residential to Buy to Let/HMO mortgage
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heston2014
Posts: 208 Forumite
Hi,
Looking for advice please -
Have an ex-council flat that I am renting out under Consent to Let as it is residential mortgage (moved in with partner).
My tenants are students and recently, was advised needed a HMO licence as tenants are not part of a single household.
Current Fixed Term ends in Jan, CTL can be extended but ideally, would like to switch to BTL or maybe HMO longer term.
The issue is, the property comes with a Right of First Refusal clause on the lease which expires in 2024. Consequently, due to ex council and this clause, apparently, my options for lenders are very limited.
Not switching to a new product/lender would mean variable rate, which may not be an issue if CTL extension is agreed/extended. Property is managed by an agent coming up to two years, spoke with a mortgage advisers and apparently, no options for lenders due to the clause. Have approached Council if the clause could be removed but they rejected.
Has anyone dealt with a similar case?
Should I be looking at switch or stick to variable rate until the clause expires?
or switch to BTL/HMO mortgage? If so, are there lenders that consider ex council properties?
Thank you for taking the time to read this post.
Looking for advice please -
Have an ex-council flat that I am renting out under Consent to Let as it is residential mortgage (moved in with partner).
My tenants are students and recently, was advised needed a HMO licence as tenants are not part of a single household.
Current Fixed Term ends in Jan, CTL can be extended but ideally, would like to switch to BTL or maybe HMO longer term.
The issue is, the property comes with a Right of First Refusal clause on the lease which expires in 2024. Consequently, due to ex council and this clause, apparently, my options for lenders are very limited.
Not switching to a new product/lender would mean variable rate, which may not be an issue if CTL extension is agreed/extended. Property is managed by an agent coming up to two years, spoke with a mortgage advisers and apparently, no options for lenders due to the clause. Have approached Council if the clause could be removed but they rejected.
Has anyone dealt with a similar case?
Should I be looking at switch or stick to variable rate until the clause expires?
or switch to BTL/HMO mortgage? If so, are there lenders that consider ex council properties?
Thank you for taking the time to read this post.
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