Consent to lease advice

ChelleLink

I have recently submitted a mortgage application with the support of a mortgage broker for a property with my partner. I had discussed my need to let out my property with the broker, and explained the LTV in the property, which is approx 10%. My broker had advised that there would be no probelm getting consent to lease form my lender, Halifax, but to wait until our new mortgage has been approved.

We are now progressing with our mortgage application, paid for survey's etc. I popped into Halifax to enquire about the consent to lease, and was told that they only give this on houses with LTV of 75%, except in extreme circumstances.

My income allows me to afford to pay both mortgages if the property was ever left empty. Howver, I don't have the extra cash to pay for the increase LTV as we have just committed it all to the new property.

Does anyone know of Halifax ever agreeing to a lower LTV consent to lease in these circumstances?

clutton_2

i would be wondering why my broker had lied to me.... even on this forum we all know what Halifax wants in terms of LTV ... i hope you are not paying him a fee ?

silvercar

You can't let it without consent as to do that would be fraud - obtaining money by deception - as you would have applied for the mortgage knowing you want to let it out immediately.

I think your broker is playing games: get you the mortgage, get his commission then shrug helplessly.

Why not go for a straight BTL mortgage?

tbs624

Why did you not simply contact the Halifax direct yourself and ask the question?

You could have done it as a general query, without giving your name. IMO they will be unlikely to budge.

Your broker will be interested in the commission he earns on the new mortgage, not your concerns about the other property.

tbs624

silvercar wrote: »

You can't let it without consent as to do that would be fraud - obtaining money by deception - as you would have applied for the mortgage knowing you want to let it out immediately.

I think your broker is playing games: get you the mortgage, get his commission then shrug helplessly.

Why not go for a straight BTL mortgage?

I think maybe you misunderstand the OP ?

I read it as s/he & partner buying a property together but s/he also has a separate own property, which is mortgaged with the Halifax

silvercar

tbs624 wrote: »

I think maybe you misunderstand the OP ?

I read it as s/he & partner buying a property together but s/he also has a separate own property, which is mortgaged with the Halifax

I did misunderstand.

OP, maybe search this board for threads on consent to let as there have been some recently discussing this issue.

catloverbex

Oh no! I'm in the same situation as you. But fortunately my broker advised me to get consent to lease before proceeding with new separate mortgage application.

I went into the branch of my existing mortgage provider (HSBC) and was told that i'd need at least 80% LTV (which I dont have!). I was gutted so just out of interest I called the special mortgage centre operated by HSBC. They said it would be fine to do for a 12 month period (my house is worth £90k, my mortgage is £85k). I have also been told by 2 different HSBC staff that at the end of the 12 months, it should be a mere formality to renew it for a further 12 months (providing no payments have been missed). I asked them to put it in writing, which they have now done and I just ignored the bloke in the branch! (who coincidentally was an arrogant, rude muppet).

Maybe you could try contacting somebody else at Halifax and see if they say yes? Perhaps by saying it's only for a short term until the market picks up and you can sell at a good price. Soon as someone says yes get them to put it in writing asap!

Hope you manage to get it sorted!

BitterAndTwisted

If the OP only has 10% LTV I would put it on the market and get shot of it asap. Letting isn't the answer to all property-owning ills by a very long chalk, especially for the inexperienced

ChelleLink

Thanks for everyone's thoughts here. I am starting to question the honesty of our Broker now, which is very disheartening as we'd spent a lot of time with him and came recommended by a couple of people.

As it happens, we had to pull out of the sale yesterday anyway as the property was valued at less than we had offered and we were banking on using 5% vendor aided deposit to get a better interest rate. The vendor is not willing to move on the price, so we had to withdraw.

Back to the drawing board ...