Buy to let mortgage - flat empty

boywizzard

Hi, we have a flat that is on a buy to let mortgage currently. We are in the process of selling the flat which is currently empty. 

The issue is that the mortgage stipulates that the flat can’t be left empty for more than 30 days.

I’m really concerned as to what might happen next, not least because my wife has been on long term sick recently, only returning to work in November, so if we need to move products we will have a problem providing payslips. 

Does anyone have experience with this or advice to offer? We are entirely able to afford the mortgage repayments through savings etc. but if we are forced to move products the calculation may say we cannot. What would happen in this case, as we would technically already own a property that we have been assessed as unable to afford.

any more details please ask. I will be contacting the mortgage company I. Early January to confirm, I’m just looking at what I should expect currently. 

Many thanks,

alex crossland

ACG

I would not worry too much. 
Worst case scenario they call in the loan, but I think if you were to tell them that the property is up for sale they would leave you alone for a period anyway. 

Realistically they are unlikely to even know the property is empty. 

K_S

I'll second what ACG said above. I have had plenty of BTL clients sell vacant rental properties and personally have never come across this as an issue. I imagine it's a pretty common scenario when a rental property is put up for sale.

dimbo61

Just check on the property each week.
Turn off the water at the stop !!!!!! 
Keep the heating on low.
Prepare the flat for sale.
Maybe stage the flat with hired furniture.
Nice lighting with LED bulbs 

Annisele

I'd be more worried about the insurance than the mortgage.

If you're genuinely in the process of selling the property, the lender won't care. (If you just had it "on the market" as window dressing for the fact it was your holiday home really, then the lender might care eventually - if it found out. But even then the lender would just tell you to refinance or sell. Since you're selling anyway, no problem.)

On the other hand, if the insurance assumes the place is occupied and it isn't, you'll have a horrible problem if the pipes burst / it burns down / some passerby throws paving slabs through the windows. I'd suggest you check what your insurer requires you do when the property is empty, and change the insurance if necessary.

ACG

Annisele said:

I'd be more worried about the insurance than the mortgage.

If you're genuinely in the process of selling the property, the lender won't care. (If you just had it "on the market" as window dressing for the fact it was your holiday home really, then the lender might care eventually - if it found out. But even then the lender would just tell you to refinance or sell. Since you're selling anyway, no problem.)

On the other hand, if the insurance assumes the place is occupied and it isn't, you'll have a horrible problem if the pipes burst / it burns down / some passerby throws paving slabs through the windows. I'd suggest you check what your insurer requires you do when the property is empty, and change the insurance if necessary.

I worked on the assumption that it was a flat so there would be block insurance. 
But I suppose there is no harm checking the insurance. 

boywizzard

Exactly right, the block is a council block but with 2 of the flats sold privately, so the building is insured by the council. 

Thanks for the responses everyone, this was pretty much what I thought. Just one last question, everyone is saying that there is no way they would find out, does this mean the advice at this point is just not to bother saying anything?

if this is the case then what is the worst case scenario if we don’t tell them and they do find out? my thinking was that it was better to be honest and so I was going to call them next week to discuss options.

we are half way through selling already yea, with a buyer found, the price set, and the paperwork started, so I don’t think they will be too concerned!

thanks again.

user1977

Their remedy if they found out would be to require you to redeem the mortgage, whether by selling, remortgaging or finding the cash elsewhere. Failing which they could repossess. All of which would take much longer than you simply proceeding with your sale. I wouldn't worry about it.