Swapping to BTL after relationship break-up?
My partner and I have unfortunately broken up after 7 years together, during which time we have cohabited on a residential mortgage in both our names. We also have a 2 ½ year old son.
Thankfully the split is amicable so we are in discussions over what to do with our house. We are very reluctant to sell as we only bought it in November 2014 (we’d previously had a res mortgage on our previous property for 4 years), have spent a lot of time and money into doing it up and our son being settled into the area (nursery etc.).
The current thought process is that I will move out and rent somewhere nearby while my ex and son remain in the house. However, as my ex only works between 8 – 20 hours a week on a zero hours contract (she works in home care), she can’t afford to take on the mortgage by herself. I’m happy to continue paying it, but will then struggle to pay rent on my ‘new’ place as well.
While the mortgage is in both our names, the agreement was achieved only using my financial information for the reason outlined above.
I mentioned this to a friend who suggested the possibility of switching our mortgage to a BTL solely in my name, whereby I effectively become the landlord and my ex the tenant. The rent to cover the mortgage would then be made up between my ex’s earnings and housing benefit.
Does anybody have any thoughts on whether this is a feasible approach and the potential pitfalls / consequences? Do lenders allow mortgages to be swapped in such circumstances?
I’ve put a call into our mortgage advisor to discuss but am waiting to hear back from him.
If I’m honest, I’m not convinced at how ethical this would be (I despise those who claim more than they should) but am willing to consider any option that enables us to keep our house and give our son some continuity going forward.
Any advice / thoughts would be welcome.
Thanks
Samir
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Member Since October 2014 - Comments: 9
5:25 PM, 28th April 2015, About 11 years ago
Hi Mark
Hand on heart, I don’t think I would be able to evict her – this is just one of the many reasons I’ve now decided that changing to a BTL isn’t the right option. As it seems that my ex wouldn’t be eligible for HB to live here it’s just a no-go.
Jay
Thanks again, I’ll give them a ring and arrange an appointment. Need to know exactly what her situation is.
What a mess – just hopeful my Euromillions ticket comes in tonight 🙂
Member Since October 2014 - Comments: 423
5:42 PM, 28th April 2015, About 11 years ago
Reply to the comment left by “Samir Jones” at “28/04/2015 – 17:25“:
The Citizens advice bureau (or whatever your area has) can advise you on all benefits.
Although they are often volunteers, they are there for your good unlike the council and DSS.
It may be an idea to take advice from all of DSS, council and CAB.
Can I buy a 25% share in that ticket after it has come in? Do I hear no? Shame!
Member Since July 2013 - Comments: 1266 - Articles: 1
11:32 AM, 3rd May 2015, About 11 years ago
Reply to the comment left by “Luke P” at “28/04/2015 – 12:04“:
Your friend can get a forced sale, you don’t say if they were married or not. If they were it will be part of the divorce settlement. If not then she cannot prevent a sale. Your friend should talk to a solicitor.
Member Since July 2013 - Comments: 357
6:59 PM, 3rd May 2015, About 11 years ago
Hi Samir,
The Dhss forms clearly ask did you own a house or are your related to the Landlord or any dependants in the household. And when you as landlord fill out it asks the same.
Now you need to look at solutions. If your partner would leave the house leaving you living there. She would then qualify for housing by either the council or private sector where you can help with the cost of rent if need be. You could go as guarantor although please be aware what that really means.
Can your ex partner claim to live with a family member temporary to help get a council house for her and your child.
Depending on where you live it might not take long for the council to find a place.
It really is not worth lying to the housing over the Dhss payment as they can claim it all back and you get a conviction for fraud.
I hope it all works out for you both.