Toby
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Registered: 29th Nov 05
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To rent a property out but not on a Buy to Let Mortgage and not tell your current mortgage provider that your renting?
What are the chances of them finding out?
Reason i ask is that for me to switch to a BTL product its going to cost me £2.5k redemption on this mortgage and about £3k in fees for the new product so for £5.5k i think i would risk it.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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I don't know about the legality as technically you'd be breaking the terms of your mortgage contract BUT when my house was revalued a couple of months ago for the mortgage; one of the questions on the form was is there any evidence of commercial activity at the property and then another about if the property appeared to be rented out
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Sam
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Registered: 24th Dec 99
Location: West Midlands
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Our landlord does this.
His mortgage statements come here as well, he once opened one up while he was here and forgot to take it with him when he left (he sent someone to fetch it for him later) - I now know what he pays 
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Toby
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Registered: 29th Nov 05
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quote:
Originally posted by LiVe LeE
I don't know about the legality as technically you'd be breaking the terms of your mortgage contract BUT when my house was revalued a couple of months ago for the mortgage; one of the questions on the form was is there any evidence of commercial activity at the property and then another about if the property appeared to be rented out
Legaillty was the wrong word. I have read the T&C's a but more and they will act upon it if they find out.
The house is full of furniture still and i allready have the mortgage so no need for them to come out but if they did they would see its all good.
Going to ring them now see if i can get my Ex off the mortgage and go from there
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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not that simple to get your ex off; I;ve just been through the same thing; they'll almost definitely want to revalue the house and offer you a new mortgage deal based on new assessments of your income and ability to pay. I had to pay a relatively small capital repayment to drop it to a level at which I would be accepted as a soul account holder. I know other peopel who have had to pay much, much more than me.
Ex's are a comeplete nightmare full stop
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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if you have any questions about it, as I said I've just been through it. Jules is pretty clued up too
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Simon
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Registered: 24th Apr 03
Location: Oxfordshire
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I didn't think the only thing you have to do to rent is change the mortgage. Don't rented properties have to have things like all doors fire doors, fire extinguishers etc?
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Toby
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Registered: 29th Nov 05
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quote:
Originally posted by Simon
I didn't think the only thing you have to do to rent is change the mortgage. Don't rented properties have to have things like all doors fire doors, fire extinguishers etc?
There is more to it than just swapping the mortgage but thats my main concern at the moment but in terms of other safety feature then thats down to the building regs for that building.
In terms of 'just' removing my ex, i appreciate its not that simple, it was more a generalised veiw based upon what myself and my FA have just spoken about.
Keep wanting to ring them but something keeps coming up each time
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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Are you having to make a financial settlement to her for her equity?
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Toby
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Registered: 29th Nov 05
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quote:
Originally posted by LiVe LeE
Are you having to make a financial settlement to her for her equity?
Theres a lot to it but after some fortunate events on my side her equity share is currently £308
I really have her in my pocket due to the price paid for the house and the value etc and the cost of selling if we had to
Anyway spoke to Nationwide they said more than likely need to add one of my parents but will confirm at an appointment next week but will be able to keep the product and everything and they said i could rent it out for 6months FOC and then at 1% on top of my rate per month after that so could even do it legally 
[Edited on 20-01-2011 by Toby]
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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whats your current LTV of the house?
I had the same situation; with a particularly nice (read very low) valuation report; she would have owed me money if we sold, bearing in mind the 6months of fucking about and her none contributions to the mortgage for 8 months total.
Then the mortgage providers valued it much higher which benefitted me with the size of the capital payment I had to make to bring the LTV below 85%
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Ben G
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Registered: 12th Jan 07
Location: Essex
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i don't think it's legal, but if your house burned down, you wouldn't get any money back if the insurance company found out you hadn't declared it.
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Toby
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Registered: 29th Nov 05
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quote:
Originally posted by LiVe LeE
whats your current LTV of the house?
I had the same situation; with a particularly nice (read very low) valuation report; she would have owed me money if we sold, bearing in mind the 6months of fucking about and her none contributions to the mortgage for 8 months total.
Then the mortgage providers valued it much higher which benefitted me with the size of the capital payment I had to make to bring the LTV below 85%
Well current LTV is about 24%. I got my desposit by selling shares to my mum, but we never transfered them into her name so i told my ex that its a loan and that would be included if we sold. This combined with the mortgage and selling fees means we owe about £135k, we will never get that poss £130k at a push but limited by Stamp duty - my estate agents said it was worth £125k ( ) so all she is owed if i buy her out is half the equity paid off the mortgage which as we are 18 months through a 3 year deal we have paid pretty much only interest.
quote:
Originally posted by Ben G
i don't think it's legal, but if your house burned down, you wouldn't get any money back if the insurance company found out you hadn't declared it.
I would take landlands insurance so would be covered there and also Nationwide are cool with renting it out.
Just need to find out if they will let me keep the mortgage on my own or if i need help
[Edited on 20-01-2011 by Toby]
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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so you only have a mortgage for £32,400 or thereabout?
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Toby
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Registered: 29th Nov 05
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sorry, 76%
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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ah, ok. You should be absoloutly fine then; They wanted me to drop below 80% but I negotiated 85% with them which they accepted. When I had the valuation done I was at 85.75%LTV so had to make a small capital repayment to drop below but I was happy enough with that.
She got 50% of our joint savings which was fair enough but not a penny out of the equity not or any fixtures and fittings we'd jointly bought so in fairness I came out of it ok. but I know of a couple of horror stories as well
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Toby
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Registered: 29th Nov 05
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You reckon? I dont earn a massive amount so not sure.
Well she brought nothing to the party. If i can leave with the ST still and the house then im laughing, may only lost about 3k in terms of bits for the house and fee's which i paid out of savings etc.
Im just glad that i should be able to keep the mortgage becuase of the £9,3k i have paid £8,6 was intrest which would be down the drain
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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I would think so; so long as you can qualify for the £102,000or less I'm guessing you've got left to pay.
The mortgage lender will take the figure they obtain which in my experience aired on the higher side of the estate agents figures.
Then its down to what you earn, I was offered 4.5x my salary at the time but in the end only needed 3times as I was limited by the 85%LTV.
Essentially although I was allowed to borrow £150(ish)k; because of the value of the house, I was limited to borrowing £102k which was 85% of the vlauation fo the property.
You should be able to secure upto 4.5x your salary if that will cover what you owe.
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Toby
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Registered: 29th Nov 05
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quote:
Originally posted by LiVe LeE
You should be able to secure upto 4.5x your salary if that will cover what you owe.
on 4.5x i am short by about £20k. Wander if i can convince my rents that its the in thing to give generously on 22nd brithdays, could make sunday a bit more intresting..
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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you may be able to get a parent to stand as Guarantor based on the 76%LTV. They may ask you to make a contribution/capital payment to bring it below 75%. They love that 75% LTV rate.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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and it may mean the ST has to go to fund the shortfall - you can always buy another in the future. What's mroe important, house ror car?
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Toby
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Registered: 29th Nov 05
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i know what your saying. Thanks for the help mate
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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no problem mate; if you do need anything, feel free to drop me a U2U and if I know, I'll answer!
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amxor
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Registered: 12th May 05
Location: Rochester
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You could ask the lender for consent to let. Many allow it for a nominal fee of about £50, you normally just renew the consent each year for the same nominal fee.
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Toby
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Registered: 29th Nov 05
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They have agreed 50quid fee and a 1% rise so will cost me an extra 60 per month (if I tell them)
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