Can I Live in My Buy to Let Property in the UK?

Estimated reading time 7 minutes

The answer to this question as to whether I can live in my buy to let property in the UK is a tricky one, while it isn’t illegal to move into a property you own, if it is on a buy-to-let mortgage you will probably find it is a condition of the mortgage that the property must be let to tenants, read our guide how do buy to let mortgages work. If you moved in there could be significant repercussions. You must know your legal obligations, understand the financial consequences and what the practical implications are of living in my buy to let property in the UK before making the decision to do so.

In this blog, we will look at the circumstances which arise that make you want to live in my buy-to-let property UK. We’ll also look at what factors should be weighed up before making the final decision, as well as the steps you will need to take once you reach the decision to live in my buy-to-let property. We will also examine how Gaffsy an industry leading cash buyer can assist you in this process.  

Why Might You Consider Living in Your Buy-to-Let Property?

Economic Climate and Rising Interest Rates: One of the key factors that might lead you to consider moving into your buy-to-let property is the current economic climate, particularly rising interest rates. The resulting escalating mortgage repayments may be making owning a primary residence as well as maintaining your buy-to-let property financially challenging. In this case it could be that you conclude moving into your buy-to-let property is a good solution to reducing your overall housing expenses.

Rent Not Covering the Mortgage: With the mortgage repayments having risen substantially in recent years it could now be that rent you’re receiving from tenants no longer covers the mortgage payments and associated costs relating the rental.  If you are experiencing a rental shortfall and are not going to be able to raise the rent to cover the increasing repayments it is going to impact your financial stability. To reduce the financial burden you can sell a buy-to-let property or move into it and end the tenancy.

Impact of the Renters Reform Bill: The introduction of the Renters Reform Bill can have significant implications for landlords. If the bill results in increased operational costs, tighter regulations, or diminished profitability, you might contemplate moving into your buy-to-let property as a way to mitigate these challenges. It’s crucial to stay informed about the evolving rental laws and how they may affect your property investment.

Affordability Concerns: Life circumstances can change unexpectedly, leading to affordability concerns. For instance, if you or your spouse experiences unemployment or a reduction in income, moving into your buy-to-let property can be a temporary solution to reduce housing expenses until your financial situation stabilises.

Change in Personal Circumstances: Personal priorities can evolve over time. If you’ve developed a stronger desire to live in a specific location, if you are going through a divorce it might make sense for one of you to leave the family home and move into your buy-to-let. You maybe moving back from working abroad, your children or other family members may want to move into the house, it may be a good option if you’re looking to downsize. Moving into your buy-to-let property to accommodate these new needs may make a lot of sense.

What Important Considerations Must be Taken into Account?

Before making the decision to life in my buy-to-let property UK, several critical factors need to be taken into account which can they help you make the correct choice:

Lender Approval: Consult with your mortgage lender to ensure that this change complies with your mortgage terms. Moving into a property initially purchased as a buy-to-let without lender approval can lead to serious repercussions.  If you don’t let them know your plans and move in, in it can be considered a breach of contract and mortgage fraud.  This could result in your lender asking you to repay the mortgage in full and if you can’t afford to repay it the repossession of your property.

Financial Analysis: Conduct a thorough financial analysis to determine if living in your buy-to-let property is a viable solution. Assess whether the potential savings on housing expenses outweigh the financial implications of converting the property’s use.

Tax Implications: Be aware of any tax implications associated with changing the use of your property. It is probably advisable to seek some advice regarding the tax laws and regulations and their implication when switching your main residence to your to buy-to-let property.

Legal Requirements: If the property has buy-to-let finance then if you are moving into it you are required by law to change the finance from a buy-to-let mortgage to a residential mortgage. It is also imperative to ensure that appropriate guidelines are followed to end your tenant’s tenancy agreements.

How to Switch Buy-to-Let to Residential?

If after taking the above into consider you decide I want to move into my buy-to-let property in the UK and switch to a residential mortgage then you will need to be prepared for your mortgage lender to reassess your financial situation.

They will want to know that your income is sufficient to meet the lending criteria, they will request the following documentation

  • Proof of identity (passport or driver’s license)
  • Proof of address (bank statement / utility bill)
  • Proof of income (3 months’ payslips if employed / 2-3 years certified accounts if you are looking for a self-employed mortgage)
  • Last 3 months’ bank statements
  • Proof of equity – You’ll need to ask your current lender for a redemption statement which is the amount required to pay off the loan, including any fees.

They will also run credit checks to assess your financial viability.

Why are they running all these? When you took out your buy-to-let mortgage the lender would have taken the rental income into when deciding how much to lend you and therefore as there is not going to be any rental income, they need to make sure you can afford to make the new repayments.  To find out more about mortgages read our First-Time Buyer Mortgage Guide which covers everything you need to think about when applying for a mortgage.

Prefer to Sell my Buy-to-Let Property UK?

Decided that you would prefer to sell my buy-to-let property fast?  Contact Gaffsy for a hassle-free and expedited process to sell flat fast. Gaffsy a property cash buyer offering competitive prices and a quick turnaround, allows you access to the funds you need without the complexities of the traditional property market.

Perhaps you have decided that selling your primary residence and moving into your buy-to-let property in the UK is the best option for you and you want to sell your house quick now.  We buy any house no matter the condition or situation.

Gaffsy can provide you with a no obligation free cash offer for your property and you can have the funds in your account in 7 days or we can work on a time frame that suits you, enabling you to make a seamless move while avoiding the uncertainties and delays often associated with the conventional property selling process like property chains, gazundering, mortgage delays or lenders hoops to jump through. What are you waiting for call us on 0207 459 4546 to speak to one of the team or simply request us to make an offer.

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