Buy to leave?

Buy to leave?

10:21 AM, 30th June 2021, About 3 months ago 11

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I am thinking about a Let to Buy mortgage, but rather than looking for a tenant, I am planning to leave our home unoccupied and largely unfinished, seeing it is a flat and insured by the management company.

I May need the flat in the future and by not renting, it will be kept in good condition and will always be available to my wife and me as we age.

Question please: By not renting, and leaving the flat unoccupied, will we be in breach of Let to Buy mortgage conditions which merely state neither my wife and I nor immediate family must not live in the property.

Any observations would be appreciated.
Kind regards,
James.



Comments

by silversurfer2017

17:33 PM, 30th June 2021, About 3 months ago

The last two BTL mortgages I had, one with Skipton BS and the other with Leeds BS, neither asked for a copy of the rental agreement and both properties were empty at the time of applying for the mortgage. I got the mortgages based on projected rental figures and tenants were found quite quickly. Perhaps only applying for a 60% mortgage helped. James could easily have a few months delay with no problem - researching the market, deciding whether to rent on furnished/unfurnished basis but even if you only get a few hundred per month in rent then someone else is paying the Council Tax and the utility bills, so choice of tenant should be number one priority rather then renting to the highest offer. In my experience I would recommend that James lets on an unfurnished basis supplying only carpets, curtains and white goods. Rent on an AST for 12 months with a 6 month break clause. Repeat again after 12 months or rent on a periodic tenancy basis. Capital outlay will be modest and IMO you are more likely to get a responsible and committed tenant.


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