Thanks for this. My understanding is that if I pay the mortgage the lenders don't really mind and I shouldn't have any issues (although technically i will be in breach of my mortgage). What is the worst case scenario, would they just make me pay a penalty fee and hike up the interest rate? Also when i remortgage to a residential will the new lender ask to see tenancy agreements or any proof that the flat was let out previously. Also if I'm not receiving income from the property will i get in trouble if I don't declare this and pay tax?
The problem is I already have a residential mortgage for the flat my gran lives in so I wouldn't be able to get a second residential mortgage. I'm planning on perhaps residing in the property for a few months to a year and then maybe let it out. I purposely got a by to let mortgage of just 2 years as I plan to change this to residential as soon as my gran sells her flat next year.
As I won't be receiving rent (i.e. income) surely I don't need to declare this and pay tax for this? As i haven't rented the property previously I assume HRMC won't have on file that I own the property as a BTL? I have another BTL property that is BTL that I pay tax on so if I lived there then perhaps HRMC would question this but not for somewhere I haven't previously paid tax on... am i wrong?
Great, thank you for your advice!
will do, thank you