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Buy to Let Mortgage - do Lenders insist on tenant

  • taken4aride
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18 Jul 12 #344082 by taken4aride
Topic started by taken4aride
Current situation:
Since divorce, property been in negative equity.
Property held as joint tenants
Very short marriage only lasted a matter of months. Not paid anything since towards mortgage. Got my own life now. Come out of marriage with nothing.
Agreed Clean Break Consent Order in 2009 for house to be sold asap by OH as soon as possible when I would sign over the Transfer for sale of property. This was on the strength that income was going to be put in by another party to add value to the property so it could be out of negative equity and either mortgaged in OH''s name or sold.
Consent Order included clause to go back to agree timing etc.
Been given excuses ever since and property recently been up for sale over £100,000 more than the outstanding loans as it has had loft conversion.

The latest is that there is a Buyer who is getting a survey done but wants to buy the property on a Buy to Let Mortgage. He had apparently had to have a tenancy to get the mortgage so they have let the property and the tenant has moved in! I''m told things are slow these days so could be a while for the Buyer to proceed. In the meantime, OH has reduced his mortgage payments to interest only whilst getting rent from the tenant so gets £500 profit a month.

Is this what happens these days with buy to let mortgages? - what do you think I should do? Hang on and hope for the best or go back to the Court for Directions? I''m expecting a baby shortly so it seems unfair that I cannot buy a property and move on with my life. Any advice would be greatly appreciated.

  • bluefairy
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18 Jul 12 #344085 by bluefairy
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Hi
this does sound a bit strange, normally a person buying a property on buy to let would have a survey and rental income valuation by lender to determine if they could borrow x amount and then let it, also they now usually require the potential borrowers earnings as extra assurance that they are eligible for mortgage.

The person selling does not have to let out property in advance (sale could fall through!)maybe your ex has let it himself and is stalling you. If so he would have to have changed mortgage to buy to let and this is normally interest only (as the rental income covers mortgage and the interest goes against your tax bill). You just want your name off?

Blue x

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18 Jul 12 #344087 by taken4aride
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Thank you for your quick reply - that is correct blue - I just want my name off as I can''t buy a property myself as I''m still on the deeds of FMH!

I don''t want to stall a sale of the property, but at the same time I can''t help but worry. Don''t know if our lenders are aware of the situation, for instance!

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18 Jul 12 #344088 by taken4aride
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Oh, BTW, I haven''t given my consent to any change of our mortgage terms or to a tenancy! Being a joint tenant seems to just mean in my case that the Lender can come after me if they have to but can vary anything they like without getting my consent and the joint owner can let out the property without my consent also. Doesn''t seem very fair?

  • missguided
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18 Jul 12 #344110 by missguided
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I an currently looking for a btl mortgage.
You need to earn over a certain amount and rental normally needs to be at least 125% of mortgage.
You can either show this by current rental and/or mortgage company do their own check.
I have never heard of tenants moving in first, you need to check this out pronto!
Miss

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18 Jul 12 #344119 by taken4aride
Reply from taken4aride
Thank you Miss, very grateful - I will have to get in touch again and find out what is going on!

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