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Have become a Landlord - classification of old property

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  • 17-04-2015 10:42am
    #1
    Tricky1979
    Registered Users Posts: 142 ✭✭


    Hi,

    Apologies if this has been covered before.

    I recently moved from an apartment to a house. The apartment is now rented out. The apartment is on standard variable rate.

    Am I required to inform the bank that the property is no longer my principal private residence (PPR)? If so, does this mean that I will revert to Buy to Let mortage higher rates? The apartment was my PPR for signficant number of years however my circumstances changed which lead to a move to a house.

    Any feedback or direction to another thread would be appreciated.

    Tricky


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    #2
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    Tricky1979 wrote: »
    Hi,

    Apologies if this has been covered before.

    I recently moved from an apartment to a house. The apartment is now rented out. The apartment is on standard variable rate.

    Am I required to inform the bank that the property is no longer my principal private residence (PPR)? If so, does this mean that I will revert to Buy to Let mortage higher rates? The apartment was my PPR for signficant number of years however my circumstances changed which lead to a move to a house.

    Any feedback or direction to another thread would be appreciated.


    Tricky

    You'd really need to read your mortgage docs to know the correct answer. Some docs have specified this, some not... The real concern is if you had a tracker because your variable is not going to change much if it's a ppr or btl.
    I'd say these things only become an issue if you miss a payment on the mortgage... If you are making your correct payments the bank have bigger headaches than you...
    I'd say nothing if it was me but its your call...


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    #3
    NIMAN
    Registered Users Posts: 33,607 ✭✭✭✭NIMAN


    If the bank are getting their money every month then they will be happy.

    But thats not to say Revenue would be! Are you paying tax on your rental income from the apartment? You should be, and this is your main concern, because if you don't and a few years down the line Revenue find out, you could be hit with fines.

    There are other things you should be aware of too, like:
    1) Different insurance is needed
    2) You need to register with the PRTB
    3) You shouldn't be claiming TRS on the apartments mortgage
    4) Is your apartment now liable for 2nd home tax?

    Check out www.irishlandlord.com, plenty of good info in there.


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