Can Investors Live in Their Buy to Let Property?

So, if you’re a property investor, can you live in a buy to let property that you’ve purchased, and more importantly, is it illegal to live in your buy to let property?

Much to some investors’ disappointment, it’s not possible to live in a buy to let property most of the time. There are, however, some exceptions.

For investors asking, ‘can I live in my buy to let property if I use a buy to let mortgage?’, the answer is no. If you’ve purchased your property with the help of a buy to let mortgage, then you can’t live in your buy to let property.

Living in a property that has been financed with a buy to let mortgage would leave you in breach of your mortgage terms, as these mortgages are designed for landlords and investors. For a property you want to live in, you need a standard mortgage.

On the other hand, you may be thinking, ‘I didn’t use a BTL mortgage, so can I live in my buy to let property?’.

If you paid for your investment property outright without the help of a mortgage, then it’s perfectly legal for you to live in your rental property for as long as you want.

This is because you already own your property and don’t have any mortgage payments to commit to.

If you’re caught living in a buy-to-let property that is financed by a mortgage, the following could happen:

• You could end up on the Rogue Landlord Database. This is a database introduced in 2018 that helps authorities identify landlords who have been found breaking the rules and/or committing illegal activity.
• If you’re found to be in breach of the Fraud Act 2006, you could face jail time and end up on a criminal record.

I Have a Buy-to-Let Mortgage – Can I Live in My Buy-to-Let Mortgage Property Without Breaking the Law?

Suppose you’re adamant that you want to live in your buy-to-let property but cautious about breaking any rules or committing mortgage fraud. In that case, you could consider switching over to a residential mortgage.

It’s often possible to switch a BTL mortgage over to a residential mortgage, so it’s worth reaching out for mortgage advice to see if this is something that would work for you.

You’ll still need to complete the usual mortgage application checks. Also, not every mortgage lender who offers buy-to-let mortgages will offer residential mortgages.

Still, this is the best option if you’re serious about turning your buy to let investment into a home of your own.

If you’re looking to stay in your buy-to-let property temporarily or with a short-term stay, then you could also consider switching to a regulated buy-to-let mortgage.

This type of mortgage is more flexible and is commonly used by those who want to rent a property out to a family member.

However, keep in mind that once your stay in the property has ended, you’ll need to rent the property out to a family member rather than a member of the general public, which limits your investment potential.