Buy to let mortgage

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    Buy to let mortgage

    Now I’ve got my property back it needs some work but shouldn’t take too long.
    I enquired with virgin mortgages and if I sell or change to residential then there’s a fee of 4% which is £3600.
    I can port the mortgage but I think they expect me to rent it out again. Doesn’t look like they would allow me to move into the new property.
    I need a property to live in myself but I am done with the flat I have and want it gone.
    Is my only option to sell pay the fee and start again as a owner occupier?
    Or to save the fee could I get away with porting and being my own tenant?

    #2
    You can't be your own tenant

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      #3
      You can't get a buy to let and rent it to yourself you will see the T&C's wont allow this. Also it's not financially good to do it as BTL is a commercial mortgage and your paying more in the interest rates so it's not good. Also buying it again will mean you will have to potentially pay stamp duty.

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        #4
        Originally posted by Neelix View Post
        You can't be your own tenant
        Actually what law says this? There are some practical scenarios where this is potentially useful - for example A+B+C who own a property jointly might want to sign a tenancy agreement involving ABC vs C alone. Or a company owned by A might be the landlord or tenant of A as an individual.

        Virgin finance seems to be charging massive fees while giving their savers 0.1% interest - all courtesy of the government who is bankrolling banks whilst savers get shafted.

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          #5
          I suppose you'd need to look at what interest rate you'd be paying when it switches to a residential mortgage & weigh up the costs? I suspect that the residential mortgage interest rate will offer a substantial long-term saving (depending on the mortgage length of course) & Virgin are trying to deter you & retain some nice profit. If you see yourself living there for a while & are saving a lot of money in the long run then it's worth switching but only if you're pretty certain that you won't want to switch it back to a buy to let again.

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            #6
            Originally posted by AndrewDod View Post

            for example A+B+C who own a property jointly might want to sign a tenancy agreement involving ABC vs C alone. Or a company owned by A might be the landlord or tenant of A as an individual.
            In both of those examples the LL and T are not the same legal person.

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              #7
              Think I’ll just sell it and take the hit , wash my hands of buy to let.
              could rent it out again for the remainder of the mortgage fix (2.5 years) but what’s to say I don’t get another bad tenant?

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