Click here to close now.




















Welcome!

Blog Feed Post

Can I live in my buy to let property?

There is every chance that, at some point, you might find yourself looking for a new place to live.

There a numerous reasons that this might happen. Your relationship might break down, or you might find yourself unable to keep up mortgage repayments on your main home. On the flipside, of course, you might just want to downsize after the kids have moved out or you’ve retired. Maybe you just fancy a change of scenery.

Whatever the case, if you have a buy to let property, a novel suggestion might occur to you: why not just live there?

After all, you already have a mortgage on it. It saves you extending yourself to a further home loan, or even renting somewhere. If the place is currently empty, more the better – with no tenant in situ, it’s just costing you money without making any back.

Unfortunately, living in a buy to let property isn’t quite that simple.

Why living in a buy to let property is usually impossible

The distinction between residential and buy to let mortgages generally comes down to Financial Conduct Authority (FCA) regulation.

Residential mortgages benefit from FCA regulation because the customer knows they’ll receive the best advice and that the mortgage will be suitable and affordable. On the flipside, buy to let mortgages benefit from not being regulated, because commercial investment sometimes requires risk-taking and over-extension that wouldn’t be possible under FCA scrutiny.

Herein lies the problem – if you might be living in the property, even for just one night, the mortgage on it needs to be regulated and the mortgage lender could be on the naughty step for not having ensured as much at the point of sale. This is why most lenders make it a condition of your buy to let mortgage that you don’t live in the property yourself, under any circumstances.

So when I said that living in a buy to let property was ‘impossible’, I was of course speaking figuratively – nothing is physically stopping you from regaining possession of the property and setting up kip. But doing so will in all likelihood invalidate your mortgage, and that is not something you want to do, because you may be asked to repay the whole thing in full.

So when can I live in my buy to let property?

Buy to let mortgages aren’t always unregulated. If you will be letting the property to a close family member or explicitly plan to live in the property yourself in the future, the sale will be regulated.

If you knew when taking out the mortgage that you planned to eventually live in your buy to let, and informed your mortgage broker of the fact, then the sale was probably regulated and your lender will be less squeamish about letting you move in. You should still check with them before picking out new curtains, however.

What if I’ve paid off my buy to let mortgage?

If you’ve paid off your mortgage, then all of this is a moot point. With no charge on a property, no lender can tell you what you can and can’t do with it – so fill your boots!

Of course, if you have tenants in situ, they might be a little concerned to find you as their new roommate. Instead, you’ll want to regain possession – see here for guidance on how to do so. It’s important to remember that you’re evicting your tenant from their home, so remember to give them ample notice. (It’s even better if you can advise them when their tenancy begins that you might wish to move back in to the property in the future.)

What are my other options?

If you find that the conditions of a particular mortgage or lender are overly restrictive, you can always refinance with a new loan. Bear in mind that you might incur early repayment charges (ERCs) for paying off your existing buy to let mortgage early. You might be able to avoid this by sticking with your current lender, though doing so will close off the rest of the market and you might miss out on a good deal.

If you want to have the option to go back to letting the property in the future, it may be possible to switch to a regulated buy to let mortgage that will allow you to live in the property for a period. See our buy to let remortgage page for more details.

Alternatively, if letting the property out in the future is not a priority (or you don’t mind going through the potential minefield of ‘let to buy’ somewhere along the line), you can switch to a residential loan. The advisers in our sister company, TurnKey Mortgages, will be able to help you with this.

Your final option, if you’d prefer to continue to gain the benefits of a buy to let investment without the hassle of remortgaging, is to ‘let to let’. Let to let entails continuing to let out your own property whilst paying rent to live in someone else’s. Our article, Let to let – a guide, has more information.

Some landlords might balk at the idea of ‘paying someone else’s mortgage’ – it’s hardly a savvy investment, after all! But if you only require a temporary solution before getting back onto the residential property ladder, a minimum of six months’ renting might just be the ideal alternative to living in your buy to let property.

Read the original blog entry...

More Stories By TurnKey Landlords

Amelia Vargo is an online marketing executive for CT Capital. Amelia writes for Turnkey Mortgages, Turnkey Landlords, TurnKey Bridging, TurnKey Life and Commercial Trust.

Latest Stories
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.