|By TurnKey Landlords||
|January 17, 2014 09:02 PM EST||
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.
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
Apr. 26, 2015 10:00 AM EDT Reads: 5,051
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, de...
Apr. 26, 2015 10:00 AM EDT Reads: 5,181
Deploying and operating cloud technology is difficult and falls outside the core competencies of most organizations. As a result, many on-premises private cloud installations falter, casting doubt on private cloud as a solution in general. Yet private clouds come with a unique set of benefits that continue to drive widespread interest. There must be a better way. This session will give participants a clear roadmap of private cloud implementation challenges and offer actionable ideas for...
Apr. 26, 2015 10:00 AM EDT Reads: 1,229
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
Apr. 26, 2015 10:00 AM EDT Reads: 2,020
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Apr. 26, 2015 10:00 AM EDT Reads: 2,195
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
Apr. 26, 2015 10:00 AM EDT Reads: 2,221
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
Apr. 26, 2015 10:00 AM EDT Reads: 6,220
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Softw...
Apr. 26, 2015 10:00 AM EDT Reads: 1,729
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
Apr. 26, 2015 10:00 AM EDT Reads: 2,892
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Apr. 26, 2015 10:00 AM EDT Reads: 3,039
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at...
Apr. 26, 2015 10:00 AM EDT Reads: 1,978
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic...
Apr. 26, 2015 10:00 AM EDT Reads: 4,191
SYS-CON Events announced today that Blue Box has been named “Bronze Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Blue Box delivers Private Cloud as a Service (PCaaS) to a worldwide customer base. Built on a technology platform leveraging decades of operational expertise in cloud and distributed systems, Blue Box Cloud is a managed private cloud product available in both hosted and on-prem versions. Each Blue Box ...
Apr. 26, 2015 09:45 AM EDT Reads: 1,154
SYS-CON Events announced today Sematext Group, Inc., a Brooklyn-based Performance Monitoring and Log Management solution provider, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Sematext is a globally distributed organization that builds innovative Cloud and On Premises solutions for performance monitoring, alerting and anomaly detection (SPM), log management and analytics (Logsene), search analytics (S...
Apr. 26, 2015 09:30 AM EDT Reads: 3,856
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microser...
Apr. 26, 2015 09:15 AM EDT Reads: 2,437