Halifax - Consent To Let / Lease

MPlant

Obviously I have no option but to contact the Halifax to ensure I am following proper procedure, however I want to go to them with a 'strong case' so my situation is considered 'out of necessity'. I don't want to mention anything to them that would make them think this an 'out of choice' situation; I know others have been refused because of this and I am want to avoid this if possible.

Does anyone have any advice on what would be the best way to communicate my situation to the Halifax that would be more likely to have a positive outcome? Is my employment situation and lack of work a strong argument?

Cissi

From what you and everyone else on this thread have said I think you should make a clean break and sell the flat. Doesn't seem like you'll have much option anyway, if you want to pursue your acting dream. On the bright side, at least you aren't in negative equity!

Don't be so afraid to step off the property ladder, when you're clearly unhappy where you are. This could be a great new start for you!

MPlant

Cissi - you're right, I don't have negative equity and to be honest I'd be happy to walk away from the flat without anything just to be free of the burder. But I'd only be happy to sell if I have no other option; the mortgage fees I would incur to get out of my fixed term sooner meant I would lose a few thousand pounds to sell.

However, if I was able to rent with the Halifax's permission this would be my primary option. Waiting to sell until my mortgage term comes to an end would be a more ideal situation, considering that the purchase value stayed the same, as I would have a chance to get back the deposit I invested into the property. Unless of course the housing market deteriorates further and I am then in negative equity...

I want to do what will be the best for me in the long run rather than cutting free and regretting it five years down the line when I'm an out of work actor living on the breadline with no savings... Both options come with a risk of losing out, but at least I do have options and the chance of cutting my losses.

Also... If I did decide to put it on the market, but wanted to move out whilst it was up for sale (because of my lack of employment), would the Halifax allow me to let it out to ensure the mortgage was paid?

Cissi

MPlant, I do realise that it would be painful to have to pay the Early Redemption Fees - but in the long run this may still work out as the cheapest option, apart from the issue of consent to let. Renting out is an expensive business, what with gas/electricity certificates, maintenance/repair, tenancy voids etc.

But apart from that, no, it doesn't sound to me like you'll get consent to let from the Halifax. A) You don't have enough equity in the flat, and you yourself are a far too risky prospect (sorry!) since you'll be relying entirely on the rental income to finance the mortgage.

And then there is the serious risk of further falls in the market in the next few years... I definitely think you're far better off getting rid of it now.

MPlant

Thanks Cissi - I think your advice makes sense and selling is something I will surely consider.

In light of my situation, if I was to put my flat on the market I would need to sell it for £101k to walk away without losing anything (given the mortgage fees, etc). I'd like to think this was do-able at the moment... However, if I did not have a sale by September and got accepted into drama school, would Halifax not allow me to rent whilst it was still on the market? Would I have to refuse my place at drama school and stay in Leeds?

MPlant

I read on another post that Halifax do consent to let up to 95% LTV depending upon the individual situation...

Does this mean I do have a chance of getting their approval considering my change in circumstanes since taking the mortgage out two years ago?

VIGILANT22

You can ask all you want but nobody on here is a position to give you an answer, however I will say.... I would be very very surprised at someone being given CTL at 95% ltv...........

tryfan

when I first let my house I had a Halifax mortgage, all they wanted was a valuation and a letter from the letting agency saying how much the rent would be. seemed pretty straight forward

MPlant

I'm not so much as looking for an answer but for advice on the best means to articulate my situation to Halifax.

Given that another poster was refused a CTL because they didn't deem her situation a 'necessity' (moving to Scotland to be with her boyfriend) I don't want to call them off the cuff and weaken my case by giving them reason to think this is a 'choice' move (mentioning wanting to move to London when I could say my employment situation has changed).

If they give consent in certain circumstances for those who have less than 75% LTV it would be unwise of me not to demonstrate how I 'fit into these circumstances'. I do not wish to end up in a position where I have limited options because I've told the mortgage company that it was not essential for me to move and be forced to sell or stay in my flat because I didn't do a bit of research before calling. The first call I make to Halifax is very important and I want to be careful with what I share with them; emphasising necessity not choice.

If anyone has ay on advice on the best way to articulate my situation as 'a necessity' to the Halifax when I call to enquire, I would be grateful to hear it.

tryfan - Halifax currently have pretty unflexible terms compared to some lenders and recently it has become harder for home owners to get consent.

jsh99

I got CTL from Halifax. But my position was not classed as 'essential' and I had to bring the mortgage down to 75% otherwise no go.

We had our buyer pull out at last minute when we had already found somewhere else - our dream home - that needed a quick completion as two other people waiting to pounce if we failed to buy.