Remortgaging the Apartment

[minty12]

Hi all,
I hope someone would clarify my situation .I have a apartment which i brought as a first time buyer 2 years back.Now i am planning to move to a bigger house and thinking of remortgaging the apartment to clear some of the debts and also to pay for the stamp duty on the new house.I have been santionced 92% mortgage on the new house.I have put my apartment on the market also and thinking of selling it if i get a good deal.My question here is the bank needs a undertaking from my solicitor saying that i would be renting the apartment but if i provide a letter to the bank would i be liable to stamp duty clawback even if i have no tenants and what happens if i sell the apartment in few weeks time. I do not want to lose the house as i got a nice price on it .Please advise

 

[NorfBank]

As far as I am aware, once you do not actually take in rental income then you are fine. Although it is an undertaking you can always change your mind presumably?

 

[rmelly]

surely it's not the posters prerogative to change his/her mind in this instance - it's the bank's choice as to whether the undertaking remains or not.

entering into an undertaking where you have no intention of following through is questionable?

 

[KalEl]

surely it's not the posters prerogative to change his/her mind in this instance - it's the bank's choice as to whether the undertaking remains or not.

entering into an undertaking where you have no intention of following through is questionable?

As questionable as overstating your salary or understating the amount you spend on clothes or booze? In other words not questionable at all.
An undertaking to a bank saying you'll rent the apartment means very little...it's making the repayments that counts.

 

[rmelly]

As questionable as overstating your salary or understating the amount you spend on clothes or booze? In other words not questionable at all.
An undertaking to a bank saying you'll rent the apartment means very little...it's making the repayments that counts.

both are also questionable. the bank wouldn't have requested the undertaking if they didn't have concerns about the posters ability to service the mortgage or borrowing guidelines required it - it isn't in anyones interests for the poster to overstretch him/herself.