Mortgage fraud, what will they do?
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No I'm not declaring it also I'm not registered to vote at the property address but at a different one ( my dad's)BorisThomson wrote: »Are you declaring your rental income for tax purposes?
Where are you registered on the electoral roll?0 -
No I can't afford tocopperclock wrote: »Can you stop renting it out and move back into it?0 -
JohnnyDancer wrote: »No I don't declare my rental income to HMRC, do you know what would they do?
They will backdate the tax you owe and charge you penalty interest.
HMRC are able to find out properties that are rented out now. I had someone that didn't declare that was caught. it took HMRC 4 years but they got hit with a big bill. Their systems are more advanced than they used to be and thanks to electoral roll and land registry data being electronic now, they can cross reference inconsistencies. For example, your case would show you as the shared owner but the electoral roll will show someone else living there.
HMRC have legal powers to obtain information from third parties and landlords are a target at the moment as you are not alone. A few years ago, HMRC wrote to letting and estate agents instructing them to supply names and addresses of all landlords on their books and in receipt of rental income.
Are you complying with the legal requirements of being a landlord?
for example, have you protected your tenant's deposit in a government approved scheme?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
JohnnyDancer wrote: »No I can't afford to
I would probably seriously consider selling it then. If a BTL mortgage isn't possible and you're not going to declare to HMRC then you'll forever be looking over your shoulder.0 -
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Another aspect of this is the lender was provided with a false address history at the time of the re-mortgage, so upon credit scoring it may have missed out liabilities which you have taken out at your actual address. So it would throw their entire decision to lend into question if they found out, and potentially worthy of a CIFAS registration.0
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How did you pass the affordability when you switched the mortgage, if you can't afford to live there??0
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Have you checked that you have valid buildings cover. You may find that this invalidates your policy.
Why don't you do the honest thing and ask them for permission to let. Many residential mortgages will allow you to let out for a period of time such as 1 or 2 years, before they expect you to move to a BTL mortgage.0 -
I've been told that most lenders won't consider a consent to let or a BTL for a property with a shared freehold. In fact, it is one of the policies of the lender that I am with. Will the insurance affect the people downstairs that I share the freehold with?Rags2riches wrote: »Have you checked that you have valid buildings cover. You may find that this invalidates your policy.
Why don't you do the honest thing and ask them for permission to let. Many residential mortgages will allow you to let out for a period of time such as 1 or 2 years before they expect you to move to a BTL mortgage.0 -
Can't you just sell it?0
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