Mortgage change to Rental for Tier 2 Holder

[naziya]

Good Morning All,

Im a tier 2 General dependent and my husband is in Tier 2 General Primary.
Our Tier 2 General started from July 2014.
We had purchased a house here with Mortgage on both of us. Where we have been living for the last 2 years.
Now, due to children highschool, we have to move to a nearby town.
Our plan is to rent out the current house and take up another rental house in the new town.

Are we permitted to change to Buy to let mortgage while on tier2 visa and rent out our house please ?
Will this have any implications on Tier 2 extention and for ILR application in the future please ?

Thanks all.

[naziya]

Good Morning,

I had spoken to my lending bank yesterday and then followed up with a mortgage advisor.
The Bank is happy to change our mortgage category from First time Buyer to "Buy to Let " mortgage type.
However, there are some extra fees and more documentation involved in doing so, which is absolutely fine.

Later in the afternoon , i followed up my queries with a Mortgage advisor and he gave me more details on how to go about it, like changing the mortgage type, change of insurance, additional paper work needed, filing of tax separately through accountant etc.

However, as understandable, both the bank and the mortgage adivsor had no clue on how being on a Visa affects this whole process.

Can someone please throw some light if this is permissible for a Tier 2 General holder to obtain rental income in one town and stay on a different rented property in a different town ?
Any Fees / tax / declaration etc will be paid as per the required guidelines.

Any help please ?

[naziya]

Hello,

Any help or advice on this matter please. As we are time pressed to make a decision before 31st October.

Or, can you please help in pointing us to the right resources to contact please.

Thank you.

[Wanderer]

Why don't you as the dependent with no work restrictions rent it out under your name only?

[naziya]

Thank you for your reply.

Actually, that thought had not crossed our minds.

As the house land registry and the mortgage are on both of our names, i think we will have to then possibly change the registry documents and mortgage on to just my name.

If we are able to do this successfully, i assume then, the Tax returns for the Rental has to be done only on my name and nothing to do with my husband. - Is this correct assumption ?

In which case, at the time of ILR application, neither my husband nor me have any issues pertaining to this Rental income, as we will be filing tax through accountant.

Can you please help me if my understanding is correct and im not either over simplifying or over complicating.

Thanks

[CR001]

As the house land registry and the mortgage are on both of our names, i think we will have to then possibly change the registry documents and mortgage on to just my name.

You are confusing issues completely. There is no need to change the land registry or mortgage. You, as the dependent and joint named owner, is allowed to be the sole 'landlord' if that is how you choose to do it and declare the income to HMRC as required.

[naziya]

Thank you for confirming.
As per the suggestion, i understand that, i can be sole landlord and i file tax to HMRC just on my name.

So, my Husband (T2 Gen Primary)has no relation to any of the rental income and thus no impact for him during ILR process.

I (T2 Dependent) too presumably have no issues during ILR, as i will have filed Tax to HMRC for additional Rental income.

Is that correct please ?

Thank you.

[CR001]

Correct.