Consent to Buy Criteria

Tigerbay_2

I and my partner bought a flat a few months ago. Unfortunately we've had a few relationship issues, but we're commited to working them out and are thinking of spending 6 months apart, with the favoured option being to rent out the flat for 6 months, with us each renting separate accommodation nearby.

I understand that to do this I need to ask the lender for Consent to Let, but looking at the existing advice it seems their approval for this is far from guaranteed. Of course they will look at things like LTV and rent income vs mortgage payments, but as we have not built up much equity in the flat I wonder how important the explanation of WHY someone wants consent-to-let is important in the lender's decision?

Would they appreciate the honesty of this explanation or might this be seen as putting their financial product at risk, in which case might it be prudent to provide a slightly 'finessed' expanation?

PasturesNew

Can one of you not stay there, subsidised by the other one a bit, just to keep things easier, cheaper (it's expensive to let out your place) and to ensure that it's still pristine when you get back together again ?

You're not really renting it out long enough to [a] make it worth the hassle attract a potentially good tenant (due to tenant knowing they'd have to move out again in 6 months probably and the hassle/cost of that can easily be £00s or £1000).

It'd probably cost you a month's rent to get it ready/on an agent's books, then a couple of weeks' delay/a void, then the agent will want a month's rent for finding a tenant. And that's if it all goes to plan.

Tigerbay_2

You might be right, still considering that ...but right now i'm just just interested if anyone knows if mortgage companies would be less likely to authorise Consent To Let if they knew the reason was linked to the relationship between the two homeowners?

squack

i would say that it is probably best to assume that the relationship is doomed and if you can work together as a business relationship that would be better. then if you end up working things out, all well and good

Tigerbay_2

Wasn't after relationship counselling on this forum but thanks anyway:)

So it looks like no-one has insight into whether being upfront with the mortgage company and saying we're after a Consent to Let as part of a relationship issue is a risk, compared to telling them a different reason e.g working elsewhere in the country for 6 months?

DVardysShadow

Stark raving. Lenders see this all the time. Relationship breakdown causes major financial damage. Of course the lender will be concerned about the security of the loan - whether you can pay back and what happens to the property itself. It does not bode well that you have only been there a few months. But the permission to let question is rather trivial compared to the financial questions arising from the relationship.

Between you, if you cannot see that it makes sense that one of you should remain in the flat, then I cannot see that you are going to be able to act as a team to the extent necessary to be Landlords. Any lender who thinks about this for a few moments is going to be alarmed.

Yorkie1

Before you commit to anything, make sure your lease allows you to sub-let

poppy10_2

Yorkie1 wrote: »

Before you commit to anything, make sure your lease allows you to sub-let

??? They own the flat?

Tigerbay_2

Thanks all - letting the flat out was only one of the options, but on reflection one of us staying in the flat makes much more sense, reducing upheaval and financial risk. Cheers.