Halifax - consent to lease - help please

grey_lady

Help - I'm looking at buying a new property with my partner and am undecided about selling/renting my place out. If I rent out I will have to go onto the Halifax 'consent to lease'product which has significantly higher interest rates than the SVR I'm currently on and would actually leave me with a shortfall of £123 which is probably better than the 10k hit I would have to take if I sold up. A realistic selling price would only just cover my outstanding balance, my deposit and what I've paid off the capital would be wiped out.

Does anyone know if Halifax 'consent to lease' product allows you to make up the shortfall in rental income?

Secondly, I really need to have the new property mortgaged with the Halifax as well (only have 10% deposit amongst other reasons) but Halifax wont let you have two residential mortgages so if I do sell up then does the sale need to have gone through before they will grant me the new mortage which would kinda leave me without anywhere to live.

Many thanks for any info.

curlygirl1971

Hi

Am really not an expert on this field.....but have you actually spoken to the Halifax yet? If you are on SVR then traditionally it has been easier to get 'consent to lease' (An authority for a fee) rather than being forced on to a a new Buy-to-let Mortgage product that you are talking about below. However I think in the current economic climate mortgage providers are less flexible in these matters than they used to be.

Am sure someone else will be along soon with better knowledge / experience

grey_lady

Thanks but I just called them and they say that my ltv is 109% so I doubt they would do the CTL - I've read on here that it has to be 95% or less. The only way I'd know 100% would be to go and see one of their branch advisors who'd have to refer it to their business assessors at head office. All that to see my mortgage repayment go up from 3.5% to 5.94% plus a hefty fee. Halifax are not my friend :-(

melstar11

I've been in a similar situation myself and ended up going through a broker to do just as you would like to. The same lender knows the mortgage on the first property will be covered by rent and has provided a mortgage on the second (new) property without having to change product for mortgage number one. In branch, it was a very different story when I made enquiries.

VIGILANT22

wowfudge01 wrote: »

I've been in a similar situation myself and ended up going through a broker to do just as you would like to. The same lender knows the mortgage on the first property will be covered by rent and has provided a mortgage on the second (new) property without having to change product for mortgage number one. In branch, it was a very different story when I made enquiries.

I hope you have that in writing regarding the first property!

grey_lady

We are using a broker but apparantly Halifax wont allow you to have 2 residential mortgages, that's what i dont understand - supposing it takes a few months to find a buyer, by that time the property we're looking to buy will have long gone, but they won't let me go onto a consent to lease or buy to let!

namzij

There are companies out there that may help you get consent to let from a lender especially if they say no. What are you planning to do with the property once you have get consent to let, are you planning to become a landlord?

VIGILANT22

namzij wrote: »

There are companies out there that may help you get consent to let from a lender especially if they say no. What are you planning to do with the property once you have get consent to let, are you planning to become a landlord?

Explanation pls...........

grey_lady

'There are companies out there that may help you get consent to let from a lender especially if they say no. What are you planning to do with the property once you have get consent to let, are you planning to become a landlord?'


Not sure, if I could get a buyer that would clear the mortgage and costs then I would probably sell, that's not unrealistic but i dont think it would happen before the new sale went through. If Halifax wont grant two residential mortgages then i would need the CTL in place anyway for that,
and also if I couldnt get a buyer within a couple of months then I would look to rent out for a while until the market picks up a bit.

How can i get them to agree to a CTL when they calculate a 109% LTV though? - who are these companies that can arrange it, my broker doesnt think it can be done.

VIGILANT22

Yr broker is 100% right....

JA1000

Think you need to get some patience, what's the rush or you have to cut your losses and sell at a loss.

I know what I would do. Just wait, why can't your partner move in or buy their own place.