From: "Doug Ramage" 
Newsgroups: uk.finance
Subject: Re: 2nd mortgage advice?
Date: Sat, 27 Sep 2003 17:09:07 +0100


"Ronald Raygun"  wrote in message
news:oWhdb.1743$QU1.16176306@news-text.cableinet.net...
> Tumbleweed wrote:
>
> > "Tim"  wrote
> >> "Laura Phillips" wrote
> >> > 'Legally' you need to hav a buy to let mortgage on your Berkshire
> >> > property or the tax man's not a happy chappy.
> >>
> >> Is this really true?  Which law is broken?
> >
> > No, its bollocks.
>
> The bit about the taxman is indeed wrong, but technically you
> are doing something "illegal" by not converting the ordinary
> mortgage to BTL (or alternatively obtaining the lender's
> permission to let).  This is not criminally "illegal", but it
> is something which could result in the lender taking legal action
> against you for violating the terms of the ordinary mortgage
> loan agreement, wherein the borrower has agreed to use the
> property for not other purpose than as a home for himself
> and his family.
>
>

Although possibly technically true, a few lenders have told me "off the
record" that would rather *not* know that a tenancy had been created, as
that might restrict their repossession options.
--
Doug Ramage