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
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.