Buy-to-let and Family Members

[darko]

Hi, if a buy-to-let property was let out on a non-commercial let, say parents letting it out to their daughter, whereby making no profit on the property.

If the intention - letting to a family member - was brought earlier to the attention of the Conveyancing Solicitor who reminded the borrowers that this would be against the mortgage t & c's. And, subsequently was assured that the property would'nt be let out to a relation.

And, if the mortgage agreement offer stated that the property will be occupied by non-related persons as declared on the application and that the borrowers rights under mortgage regulation could be affected if not correct.

What can the mortgage company do if they found out that the borrowers were in violation of the agreement, t&c's, and were also previously warned about it?

[Adam Long]

You would be amazed at the number of people who break their mortgage T&C's on a daily basis.

If the question is are you breaking the lenders rules the answer is yes and if you told them would they tell you that you cannot do this then the answer is yes.

To put it in a different perspective, would the same lenders, who were happy to accept hundreds of thousands of self cert mortgages until 2007, accept money every month from a reliable mortgagee when thousands are being repossessed every year as long as they were unaware of the full circumstances, I would say that the answer is also yes.

The bottom line is whether you are happy to not tell the lender your full plans or not !

[Enness Private Clients]

I would advise you always tell the lender your full plans, anything less is risky and could get you into problems later.

There are some lenders who will lend on a property which is to be let to a family member - they are called regulated buy to lets.

[The Mortgage Hut]

This would simply be a regulated Buy-to-Let, no problem with you letting to a family member, they just need to know.

My suggestion would be speak with your adviser first, it is better to be honest and get the right mortgage, rather than annoy them.

Referring to Adam's post, he is correct on the self-cert front, however the lenders are not taking crimial proceeding against some people who did lie about their incomes, as this is mortgage fraud. Do not try and make use of a weak lending policy, just becuase it can be done, does not make it right.

If you did want to speak about how to get a regluated B2L in please feel free to message me.

Regards,

Chris