Does renting your property automatically mean it is classifed as investment property?

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wtr11

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I own a two bedroom apartment where I have lived for the last five years. I am not in a position to sell but would like to move to a larger house and therefore am looking at the option of renting my property. My own mortgage lender has advised me that my apartment will be classified as investment property if this is the route I take, although I have been told by different sources that this should only be the case if I take out a second mortgage. My new place would be rented.
Any advice would be appreciated.
 
If you cease to be an owner occupier and rent the property out then it becomes a rental/investment property with all that that entails - e.g.:

http://www.revenue.ie/en/tax/it/leaflets/it70.html

In fact even if you don't rent it out but cease to be an owner occupier then I believe that you will at least be subject to the second home property tax. Whoever told you that the property would only be classed as a rental property if you took out another mortgage was wrong.
 
ClubMan said:
If you cease to be an owner occupier and rent the property out then it becomes a rental/investment property with all that that entails - e.g.:

http://www.revenue.ie/en/tax/it/leaflets/it70.html

In fact even if you don't rent it out but cease to be an owner occupier then I believe that you will at least be subject to the second home property tax. Whoever told you that the property would only be classed as a rental property if you took out another mortgage was wrong.
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You are right ClubMan but you have made the rookie error of calling the NPPR tax " second home" tax. This is exactly what is confusing people and making them think that if they only own one house, they are not liable for this tax.

The " Non-Principal Primary Residence" tax is due if you own a house that you do not live in, whether it is the only house you own, or one of the 14 houses you own.
 
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The OP has framed a question based on what their mortgage lender has advised them in relation to the status of a property for mortgage purposes. Yet the responses to date have referred to the property's status for Revenue/NPPR purposes, which is a totally different kettle of fish.
 
T McGibney said:
The OP has framed a question based on what their mortgage lender has advised them in relation to the status of a property for mortgage purposes. Yet the responses to date have referred to the property's status for Revenue/NPPR purposes, which is a totally different kettle of fish.
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Good point. Thanks.

OP, if your mortgage provider says that if the house is rented, then the mortgage becomes an investment mortgage. So that is what will happen.

However, you should read the T&Cs of your mortgage agreement to make sure that you did sign up to this.

The opinion of "Other sources" is irrelevant.

You can't tell your mortgage provider to change the T&Cs of your mortgage because a mortgage broker / your brother / a man in the pub / an anonymous poster on a website said so.
 
My own mortgage lender has advised me that my apartment will be classified as investment property if this is the route I take
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The reason they say this is because they probably intend to change the rate of interest on your current mortgage to a higher rate. Are you on a tracker by any chance ? As Huskerdu says, check the terms and conditions of your mortgage.
 
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