What happens when an investment property becomes a PPR?

Brendan Burgess

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A friend of mine asked me this question today and I haven't come across it before.

He bought a house in May 2006 as an investment property with a view to eventually living in it.

He has rented it out since then and now he is going to move into it as his PRR.

TRS
Will he get TRS ? If he does, he would get it until Dec 2017, so it's well worth trying to get it.

He didn't buy it as his PPR, but he did buy it with a view to it becoming his PPR. Does that matter?


The bank want to issue a new mortgage
He told the lender this and they said that now he is converting it to his home, he must take out a new mortgage and lose his tracker. I can't see how they can insist on this and I have asked to see the wording in the loan agreement.



Any other issues to consider?

As this will be his home, it will be covered by the Mortgage Arrears Code if he ever gets into arrears. There may be other advantages in having it formally treated as his home - CGT is unlikely to be an issue.
 
Just bumping this in case anyone has an answer as I am in the same situation.
 
TRS issue would need to be addressed directly to Revenue. If the property was originally bought as an investment I doubt that he can now claim TRS.
The bank see this as an opportunity to rise the rate. He should have just moved into the property without informing the Bank. They can only do this if there is a relevent clause in the L/O.
Yes it will be covered by MARP in the event of arrears arising. There are no other issues of concern that I can think of!
 
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