'consent to let' questions

ocalllo

we have been trying to sell since Feb. Have had hse for 5 yrs, only this mth came off our high fixed rate and hse has not increased in value at all. We have never missed a payment and have some savings in the bank (not mortgage lenders bank).

We are emigrating to OZ asap. Have a job lined up and cannot sell hse. We have no choice now but to look at renting it out - REALLY don't want to as do not have anyone to look after property for us.
The rent will not cover the mortgage so we cannot afford to loose more and use an agent.

My question - in what circumstances can your lender refuse 'consent to let'. also is there a time limit on this (as we won't be back).
Can you sell your hse with a sitting tenent?

(if we had had a crystal ball we would have rented for the last 5yrs and saved some money......feel like the hse is a chain around our neck now)

theartfullodger

Lender has quite wide powers to refuse or, more likely charge a fee or increase the interest rate. eg if your % equity is below lenders normal lending % (25% ish now) ...

When you say rent won't cover mortgage have you allowed for interest rate increase??

Only interest (ie not capital repayment) costs are allowable against rental income.

If LL lives abroad then unless you arrive at an agreement with HMRC tenant/letting-agent must withhold 22% (I think..something like that anyway) for tax purposes.

As you will have assets & income in UK you will be liable to UK tax. It will be advisable, even if making a loss, to avoid the temptation not to declare it as by filling in tax return & accruing losses, if & when you start making a profit(that'll be when the interest rates drop further...) you can reduce your tax bill with those accrued losses.

And you've factored in maintenance charges (always higher in a rented place) insurance, gas safety cert, etc etc etc etc??

Cheers!

Artful

PS re

cannot sell hse.

err..you can, but maybe not at the price you want. Perhaps sell, declare yourself bankrupt & start again with a blank fresh clean sheet of paper??

silvercar

Your going to the other side of the world, do you really want the hassle of owning a property in the UK? Reduce the price, sell quickly and go.

des_cartes

silvercar wrote: »

Your going to the other side of the world, do you really want the hassle of owning a property in the UK? Reduce the price, sell quickly and go.

Agreed. If you're going to lose money by renting out you might just as well sell now at a loss rather than losing money every month and selling at an even bigger loss in a few years time. Someone will buy your house if it is priced properly.

ocalllo

'declare yourself bankrupt'

???
thks for the post - have factored all your points in and will be using our savings to make up the short fall.

Have NO intentions to ever declare myself bankrupt.....We do not have any financial issues other then we cannot sell our house so as we can move.
Even if we did have issues, we were not brought up that way and we take full responsibility for our choices.

other then 'giving the hse away' we cannot sell it at a price that would cover what is left on the mortgage....we are not looking to make a profit just to clear the original loan. (don't think that is being unreasonable):o


sorry don't mean to be ungreatful for replies - but i think society favours bankruptcy as an easy way out these days and i don't agree with it at all.

Bullfighter

ocalllo wrote: »

'declare yourself bankrupt'

???
thks for the post - have factored all your points in and will be using our savings to make up the short fall.

Have NO intentions to ever declare myself bankrupt.....We do not have any financial issues other then we cannot sell our house so as we can move.
Even if we did have issues, we were not brought up that way and we take full responsibility for our choices.

other then 'giving the hse away' we cannot sell it at a price that would cover what is left on the mortgage....we are not looking to make a profit just to clear the original loan. (don't think that is being unreasonable)

What your mortgage amount is has no bearing on the value of the property. If someone takes out a personal loan on a car, and a year in decides to sell it, do you think it is reasonable to pay them the value of their original car loan?

If you think house prices are on an upward trend, rent it and sell later. If not, sell at a small loss and move on.

ocalllo

thks for all your replies.......we have already reduced price 3 mths back and i have already left msg for EA to reduce again this morning, but to be honest i still don't think it will make a difference. People are just not in a position to buy around here.
hence we looking at renting as cannot wait indefinitely.
feeling very fustrated re: situ.

prudryden

Cut and run!

theartfullodger

ocalllo wrote: »

People are just not in a position to buy around here.

Well, post a link to where it's selling here.. You never know..

(For the avoidance of doubt no I am not trying to pull a fast one, I am not buying property @ the moment, the wife has "explained" to me she wants to move to a bigger more expensive house and that that is "my" priority..)

Hope it works out for you ocalllo..

Artful

ocalllo

theartfullodger wrote: »

Well, post a link to where it's selling here.. You never know..


cAN I DO THAT????
how would i do it?

http://www.rightmove.co.uk/property-for-sale/property-26167102.html

hope im allowed post this!

silvercar

Find it on your estate agent website. Highlight the address bar and press ctrl+C. go to the quick reply block on this thread and press ctrl+V. click the "post quick reply" button