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    • ele_91
    • By ele_91 1st Oct 17, 6:00 PM
    • 4Posts
    • 1Thanks
    ele_91
    Consent to let problem
    • #1
    • 1st Oct 17, 6:00 PM
    Consent to let problem 1st Oct 17 at 6:00 PM
    I am in a difficult situation with consent to lease.

    I bought my property almost two years ago under the government mortgage guarantee scheme.

    Last November I was made redundant and the new job. I was offered required a relocation. I understood I was unlikely to get consent to let under the guarantee scheme and considering I needed the job I have been letting the property without consent.

    It's now almost a year later and I want to get consent.

    My options are:

    1) Apply now, risk being turned down then be stuck
    2) Wait until December when I can move to a different mortgage (fixed term ends) - presumably not being bound to the conditions of the scheme
    3) Carry on without consent.

    My main reason for getting consent is that I want to sell next year and am going to find it difficult to sell without the permission of the lender, but can't afford to have the property empty whilst it sells.

    Does anyone have experience of gaining consent under the guarantee scheme? And which option would you choose?
Page 1
    • glosoli
    • By glosoli 1st Oct 17, 6:50 PM
    • 675 Posts
    • 388 Thanks
    glosoli
    • #2
    • 1st Oct 17, 6:50 PM
    • #2
    • 1st Oct 17, 6:50 PM
    Option three frankly would be irresponsible. If your fixed period ends in December, why not initiate the process now so that things are ready to be transferred over in December?
    • ele_91
    • By ele_91 1st Oct 17, 7:01 PM
    • 4 Posts
    • 1 Thanks
    ele_91
    • #3
    • 1st Oct 17, 7:01 PM
    • #3
    • 1st Oct 17, 7:01 PM
    Sorry - I meant I can start the process in December as I'll be in the last part of the fixed term.

    The good news is I am earning double the salary I was when I bought the house and therefore have been overpaying and have quite a bit of equity/savings, therefore remortgaging shouldn't be an issue.
    • Lysimache
    • By Lysimache 2nd Oct 17, 12:32 PM
    • 96 Posts
    • 39 Thanks
    Lysimache
    • #4
    • 2nd Oct 17, 12:32 PM
    • #4
    • 2nd Oct 17, 12:32 PM
    Are you going to be getting a new mortgage for your new place?

    Would the rental income be spotted on your bank statements when you apply for a new mortgage and they do affordability checks?
    • Caz3121
    • By Caz3121 2nd Oct 17, 12:47 PM
    • 10,868 Posts
    • 7,094 Thanks
    Caz3121
    • #5
    • 2nd Oct 17, 12:47 PM
    • #5
    • 2nd Oct 17, 12:47 PM
    have you been following the landlords responsibilities, gas checks, landlord insurance etc, declaring rental income for tax?
    • ele_91
    • By ele_91 3rd Oct 17, 7:08 AM
    • 4 Posts
    • 1 Thanks
    ele_91
    • #6
    • 3rd Oct 17, 7:08 AM
    • #6
    • 3rd Oct 17, 7:08 AM
    Yes I will be getting a mortgage but that's why I want to sort the consent to let issue before I buy and sell.

    Secondly I have paid tax on income, have regular gas checks, PAT testing etc, insurance etc. I am aware of the risks and I have a good tenant. Not looking for a lecture on being an irresponsible landlord, more the timing of application for consent.
    • Thrugelmir
    • By Thrugelmir 3rd Oct 17, 12:31 PM
    • 56,257 Posts
    • 49,626 Thanks
    Thrugelmir
    • #7
    • 3rd Oct 17, 12:31 PM
    • #7
    • 3rd Oct 17, 12:31 PM
    You'd be better applying for BTL. As one assumes now you've relocated you won't be returning (ever). CTL is a temporary arrangement.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • kingstreet
    • By kingstreet 3rd Oct 17, 12:51 PM
    • 32,392 Posts
    • 17,394 Thanks
    kingstreet
    • #8
    • 3rd Oct 17, 12:51 PM
    • #8
    • 3rd Oct 17, 12:51 PM
    The Mortgage Guarantee runs for seven years from completion, so AFAIK you will have to remortgage to a new lender to have any chance of consent to let.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • chappers
    • By chappers 3rd Oct 17, 7:50 PM
    • 2,956 Posts
    • 1,704 Thanks
    chappers
    • #9
    • 3rd Oct 17, 7:50 PM
    • #9
    • 3rd Oct 17, 7:50 PM
    but can't afford to have the property empty whilst it sells.
    Originally posted by ele_91
    what will you do if your tenant exercises their right to quiet enjoyment and refuses to allow viewings?
    • ele_91
    • By ele_91 3rd Oct 17, 8:10 PM
    • 4 Posts
    • 1 Thanks
    ele_91
    Thrugelmir if you read the OP I am selling the house next year.

    Kingstreet as far as I'm aware I can switch my mortgage in December

    Chappers another option is that I can move back in to my house and get a Mon-Fri let whilst I sell, but this is complicated.

    I see there is no constructive advice here...
    • Thrugelmir
    • By Thrugelmir 3rd Oct 17, 10:13 PM
    • 56,257 Posts
    • 49,626 Thanks
    Thrugelmir
    Thrugelmir if you read the OP I am selling the house next year.
    Originally posted by ele_91
    Still provides no reason for the lender to grant you CTL. The lender doesn't know if you will sell the property or not. As just your word. Which based on events to date isn't going to instil confidence. As you've broken their trust. If CTL is granted then an interest loading could be applied. Resulting in little difference to a BTL.

    In essence you are at their mercy. As are in breach of your mortgage contract. If you prepare for the worst then hopefully things will turn out for the better.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • chappers
    • By chappers 3rd Oct 17, 11:15 PM
    • 2,956 Posts
    • 1,704 Thanks
    chappers
    Thrugelmir if you read the OP I am selling the house next year.

    Kingstreet as far as I'm aware I can switch my mortgage in December

    Chappers another option is that I can move back in to my house and get a Mon-Fri let whilst I sell, but this is complicated.

    I see there is no constructive advice here...
    Originally posted by ele_91
    But as Thrugelmir has pointed out you are thinking of changing your mortgage so you can try and get consent to let. that is utter madness you will do that with no guarantee that it will be granted so why not go down the guaranteed route and take a BTL.

    Maybe no more constructive advice but it looks like you already know your options we were just pointing out the pitfalls
    • amnblog
    • By amnblog 4th Oct 17, 7:12 AM
    • 10,071 Posts
    • 3,926 Thanks
    amnblog
    I see there is no constructive advice here...
    Originally posted by ele_91
    You bought a property for your own use with minimal deposit with protection against default paid for by the taxpayer to make this possible.

    It the Lender was not benefiting from Government protection from the deal, you might get consent to let, the fact is that they are and that prohibits C2L. The Government did not intend for you to become a Landlord at Taxpayers cost.

    Remortgage to B2L (or sale) is the only way to resolve this. Letting without consent exposes you to extra risk with your tenancy.

    Is part of the problem here that you have insufficient equity to move to B2L without putting more cash in?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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