Letting my residential home whilst working overseas for 2 years?

by Readers Question

10:26 AM, 18th April 2016
About 3 years ago

Letting my residential home whilst working overseas for 2 years?

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Letting my residential home whilst working overseas for 2 years?

I work overseas and have a home in the UK. My youngest son will leave home this Summer, so the property will then be vacant for 10~11 months of the year.oversease

I will be in breach of the mortgage term if I leave the property empty for more than 45 days, but when I asked for permission to let, my mortgage company informed me that I have to convert to a BTL product at a much higher interest rate.

Can they do this? My work contract will be for a further 2 years minimum. I am not a property investor. What would happen on my return?

Thanks for your guidance.

Frances



Comments

Neil Patterson

10:30 AM, 18th April 2016
About 3 years ago

Hi Frances,

If you check the lenders terms and conditions technically they probably can, but it is not something they have to do.

If you don't get anywhere throwing yourself on their mercy you can try instigating their complaints procedure.

Frances Jones

11:13 AM, 18th April 2016
About 3 years ago

Reply to the comment left by "Neil Patterson" at "18/04/2016 - 10:30":

Thank you Neil. I'll try my luck.

John Constant

13:10 PM, 18th April 2016
About 3 years ago

Hello Frances,

it is not unusual for a lender to grant Consent to Let, usually for a period of up to 2 years. They don't usually decline unless you are in arrears with your mortgage. However, the key here is that you have stated that you will be away "at least 2 years...". This is why I believe that they have asked you to convert to a BTL.

One thing is for certain, you would not be able to live in the property on your return from overseas if you still have a BTL mortgage on the property. At the same time, it would be more difficult than normal to put a residential mortgage back on the property, because of the problems of a lender credit searching you, having been out f the country for several years.

It might be worthwhile asking your current lender if they would honour a residential mortgage application on your eventual return (assuming that you qualify in all other respects, size of salary etc), given that they are forcing you down this "Accidental BTL landlord" route.

As Neil said, you may have to do this via the lender's complaints procedure.

Bill Williams

9:24 AM, 23rd April 2016
About 3 years ago

John Constant

Your comment:- One thing is for certain, you would not be able to live in the property on your return from overseas if you still have a BTL mortgage on the property.
My BTL lender had no problem letting me live in one of my BTL properties while I sought and purchased a new residential home. They even allowed me to remortgage another 2 of my BTL's while I was there.

Ethical Man

3:43 AM, 1st May 2016
About 3 years ago

Worst case scenario you could take in lodgers. You would then have a room for yourself when you come back and your son could come to stay in it time to time too. The mortgage company's permission would still be needed, and they may limit you to one or two lodgers. If it is a nice house then professionals would pay handsomely to live there alone or with one or two others.


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