Halifax - Consent To Let / Lease

MPlant

There's no way I'd be in a position to bring the LTV to 75%.

I think my best option may be to put the flat on the market; I know they often give CTL for people who are selling if they see proof the property is on the market.

At least that way I won't need to stay living in the property.

MPlant

Just in case anyone is in a similar position - wanting consent to lease (CTL) from the Halifax - I thought I'd post an update of what happened with my 'case'.

Eventually I was given CTL from the Halifax for up to 36 months despite the LTV being much less than 75%.

Having done quite a bit of research before calling the Halifax I realised the only chance of a CTL application being successful was to put forward a case that I needed to move out and rent 'out of necessity'.

My LTV is around 85-90%. When I called the Halifax they said it was registered on their system at around 108%. The initial call centre advisor (who then booked me in with a Local Advisor) explained that if I wanted to have my LTV re-assessed I would need to pay for a Halifax valuation which would cost £100.

When I spoke to the Local Advisor (whom I had an appointment with last that day) she said that many CTL application were being rejected and that it probably wasn't worth me coming in for an appointment. Instead she asked me some details about my situation and why I needed CTL.

I did not mention my desire to move to London, etc, etc. Instead I explained my current work situation; being self employed my work has dried up since Dec and my current contract comes to an end this month. I said that I wanted to move home to my Mother's until my employment situation was looking better. I also mentioned that I may need to relocate if better employment opportunities came up outside of my current city.

I actually live in the property with my partners, however the property is solely owned by me and the mortgage is in my name. I did not mention this to the Halifax as I realised this would demonstrate that I had financial support.

Instead of submitting a CTL application or advising me to get a valuation, the advisor felt the best thing to do (and the cheapest option) was for her to send an email to the CTL department to get a feeling as to whether this was something they would be willing to move forward. She explained my situation and that I was unable to sell due to the LTV. The advisor was very helpful...

Luckily, they emailed back saying that they would be willing to consider a CTL application and asked some further questions:
- Proof of rental value;
- Details of how I would afford the mortgage living at my Mother's if I had no rental income from tenants; and
- How I planned to return to living in the property particularly if I relocated.

I responded as follows:
- I sent a link to my property as advertised on Property Finder;
- I explained that living at home I would have more financial flexibility in term of taking on casual work until I found more permanent employment, and that this would allow me to build up savings to cover the property;
- I mentioned that if I relocated it would only be for a fixed term employment post with a plan of moving back to my property in the future.

I completed the application - which was very basic - and as suggested by the advisor I said that I needed the CTL for 6-12 months. She explained that they favoured applications that seem to be short term solutions, however they always give 3 years CTL once an application is approved.

A few days after my application was submitted the advisor emailed me the response from the CTL team; they were happy for me to let for up to 12 months 'until I could return to the property or sell when the market had picked up'.

A week later I got a letter / contract from the Halifax giving me consent to let for up to 36 months. I need to return this once I get a tenant in place; the CTL will begin from the date I state on the form when the 1st tenancy begins.

They did not ask for any kind of evidence other than the proof of rental value. However later this month I'll be moving home to my Mum's once my property is rented out to save some money so I bring my LTV down before relocating.

So all in all a positive outcome... But also a learning curve in terms of the responsibility I have to my mortgage provider as a borrower.

eastendoflondon

I had Consent to Lease granted by Halifax last week.My mortgage is between 90 and 95% LTV based on their valuation about a year ago even though i put down a 10% deposit(dip in house prices).
I simply called the Halifax on the Monday and arranged a meeting the next day at my local branch.
At the meeting i filled in a "Consent to Lease" form and Halifax countersigned it with their approval.I was on the standard variable rate and have been for about a year before i requested it.The advisor said it was a straightforward thing and there was no need to change my mortgage product etc.All i hadto do was take out their landlords contents/buildings insurance at £20/month.
She did mention that normally it would mean transferring to a buy to let mortgage etc but for some reason in my case they didn't.She also stated that in the last few months it is a straightforward thing with just a form toi fill in.I'm a bit worried as it does state on the form(i have my own signed copy)that my there is a fee(not how much though).The lady however didn't mention a fee to me throughout the whole meeting and to this point i haven't been told about any fee by any other means.
My next mortgage payment goes out in about a week so i've got my fingers crossed nothing changes!

Thrugelmir

So have you received official confirmation from the Halifax that CTL has been granted?

melusina

Hello,

I bought a house in 2001, and then my company asked me to relocate out of the UK. It is now 9 years, and the house has been let throughout, always with a consent to lease by Halifax, renewed every three years. Last year, in 2009, I forgot to ask for a renewal. I asked in January 2010, already 6 moths late.

At this point, the Halifax Customer Support people started exhibiting a very strange behaviour. For instance, they state in writing that they have sent a consent to lease form to me, but the form is not in the envelope. Or, they pretend to fix an appointment with the local branch, then I visit the branch and nobody is expecting me.

After a few months of confused communication with 08457 39
4959, I went to London to visit the local branch (I live in Switzerland, at the moment). There I had meeting face-to-face, where I was told that it was not possible to renew my consent to lease. Also, Halifax could not offer me a buy-to-let mortgage because I do not live in the UK and have no plans to get back to the UK in future.

The status now:
- Customer support keeps asking me for a consent to lease, I have already sent them two copies but they seem not to have received them. Their letters look more threatening, now. And it is very difficult to pin down someone in the organisation. Even when I send letter with a delivery receipt, I get nothing back.

- I am in process of organising a remortgage of my current home in Italy. With the money, I hope to be able to close the Halifax mortgage in a few weeks, maybe one more month.

The house in London is let through an agency. It has been let throughout and I cannot breach the letting contract just to please Halifax. Besides, I need the rent to pay the mortgage.

Question: what can Halifax do during this period, until I close the mortgage with them? I am terrified that they could reposses... the residual debt is just 30% of the value of the house, not so much money, after all.

Can Halifax repossess, just because the consent to lease has expired?

Thanks

Fred

eastendoflondon

Thrugelmir wrote: »

So have you received official confirmation from the Halifax that CTL has been granted?

UPDATE - My monthly mortgage payment went out as usual and the amount is exactly the same.
My copy of the form i filled in while i was at Halifax is my confirmation that they have granted my Consent to Lease as it was signed by the bank officer in front of me and is on Halifax headed paper.What other form of official confirmation do i need?I got the same amount of paperwork when i got my mortgage approved from them.
She also performed some tasks on their system and said all was ok.
As far as i am concerned that's the end of the matter...consent to Lease granted for 3 years.

eastendoflondon

melusina wrote: »

Hello,

I bought a house in 2001, and then my company asked me to relocate out of the UK. It is now 9 years, and the house has been let throughout, always with a consent to lease by Halifax, renewed every three years. Last year, in 2009, I forgot to ask for a renewal. I asked in January 2010, already 6 moths late.

At this point, the Halifax Customer Support people started exhibiting a very strange behaviour. For instance, they state in writing that they have sent a consent to lease form to me, but the form is not in the envelope. Or, they pretend to fix an appointment with the local branch, then I visit the branch and nobody is expecting me.

After a few months of confused communication with 08457 39
4959, I went to London to visit the local branch (I live in Switzerland, at the moment). There I had meeting face-to-face, where I was told that it was not possible to renew my consent to lease. Also, Halifax could not offer me a buy-to-let mortgage because I do not live in the UK and have no plans to get back to the UK in future.

The status now:
- Customer support keeps asking me for a consent to lease, I have already sent them two copies but they seem not to have received them. Their letters look more threatening, now. And it is very difficult to pin down someone in the organisation. Even when I send letter with a delivery receipt, I get nothing back.

- I am in process of organising a remortgage of my current home in Italy. With the money, I hope to be able to close the Halifax mortgage in a few weeks, maybe one more month.

The house in London is let through an agency. It has been let throughout and I cannot breach the letting contract just to please Halifax. Besides, I need the rent to pay the mortgage.

Question: what can Halifax do during this period, until I close the mortgage with them? I am terrified that they could reposses... the residual debt is just 30% of the value of the house, not so much money, after all.

Can Halifax repossess, just because the consent to lease has expired?

Thanks

Fred

Fred,I am far from being an expert but i would be extremely surprised if the Halifax went through the trouble of repossessing your home if you are making your monthly payments without issue.They have enough problems with people who cannot afford to pay their mortgage.To be perfectly honest i'm baffled reading your story as i had my Consent to Let granted within 24 hours of requesting it.