Consent to let

dogtanian82

As part of my job, I'm going to have to work in France in November for one year. To avoid the hassle of having to find somewhere to live as soon as I get back, one option is to buy somewhere now (my first place) and rent it out whilst I'm away. I'm lucky enough to be able to put together a reasonable deposit (around 40%, thanks to my parents and lots of saving over the past decade), but I hear that some lenders won't give consent to let (I've read that First Direct is one of them - annoyingly since my current account's with them and their rates seem very competitive).

The obvious solution is to speak with the banks,but, so that I don't go on a wild goose chase, are there any that are known to be ok with giving consent to let? Obviously, I don't want to have to get a buy-to-let mortgage and then have to switch onto a standard one after just one year. I guess that the two complications might be that I'll be paid in Euros whilst I'm away (though the rent should easily cover the mortgage) and that I will only be able to live in the house for a month or so before moving away.

Also, does anyone have any idea if I'd need consent to let if I had a lodger when I got back (this isn't essential, though - I should be able to afford the repayments on my own).

Thanks in advance for your advice! Jon

neverdespairgirl

If you rent it out very soon after buying it, and intend to do so, I can't see how you qualify for a residential mortgage at all?

Senior_Paper_Monitor

'Consent to let' is based on a property purchased as residential and a change of circumstances NOT something you want to rent from the outset and change subsequently.

You will have to get a buy to let mortgage initially and then change it back to residential when you return (however the costs of BTL set-up are considerable and may make a fiancial nonsense of this plan) - you would be required to meet full residential mortgage criteria at the point of changing it and BTL lenders are somewhat neurotic about 'permission to reside' as they see it as a way of getting round the residential lending criteria.

Lodgers do not require permission from lender - but for them to be 'a lodger' you must also be living in the house.

dogtanian82

Thanks for the reply, neverdespairgirl. Don't you think that it would only be for a relatively short period (it needn't even be rented for a whole year to be viable) would make any difference? I've read online that other people in similar situations have been able to get residential mortgages, but perhaps the situation has changed. I should probably go to speak with the bank to find out, but the question is which one...

holly_hobby

To clear things .....

Consent to Let
You have a current mortgage on the property - seeking your lenders permission to let

Let To Buy mortgage
Is when you have an existing property (which is at the time of application you main residence), whereby you are seeking to purchase a 2nd property for your new main residence, upon which you require a mortgage secured. The "new" mortgage being on your new main residence.

Buy To Let
This is where you wish to secure a mortgage to enable you to purchase a property, with the intention at outset, of renting/letting it

In your case, it appears that from outset, you will not live in the property as your main residence, instead residing in France.

To that end - you will require a buy to let mortgage - however the fact that you are a FTB will further complicate matters - as a typical BTL lender in todays market, want to see some history of you as a mortgagor.

Possibly a current advisor on the board will know of which lenders, if any, will suit your initial critera, including the fact that you maywell be classed as an ex-pat whilst employed in France.

Hope this helps

Holly

dogtanian82

Ok, thanks Paper Monitor. If that turns out to be the case, maybe the idea of renting it out is a no-go and I'd be better-off looking for somewhere in a few months' time to move directly into.

Oh, and yes, the plan would be for me to live in the house at the same time as the lodger (hence the term 'lodger' :-) ).

CapJ

I think you need to go to a broker who is willing to look at this. There are two further things to consider:

1. Indeed a BTL mortgage (as said above) may not be appropriate as the lender may not allow you to reside. So a plain residential mortgage = no renting and a plain BTL mortgage = no living in on return.

2. You will be out of the country for much of the mortgage - this could make remortgaging more difficult - and you certainly would find it difficult to take out the mortgage once you left for France (if there are any delays).

One possibility could be the Halifax mortgage here as it seems tailored to someone being out of the country and then returning.
http://www.international-mortgage-plans.com/expat_mortgage_rates.htm

Finally, please also consider that it may not be easy getting someone out of the house on your return, and you may even have problems whilst in France. Do you have someone who can handle things at this end? If you live in the house beforehand there is a term you can put in the contract which makes it easier to get rid of tenants on your return

dogtanian82

Thanks Holly. For tax purposes, at least, I'm pretty sure that I'll be continually resident in the UK. For the mortgage, it's looking more complicated than I would've liked. Ah well, maybe it's worth going to speak with the bank, but I won't get my hopes up!

holly_hobby

A normal residential mge (whilst resident in France) would not be available due to terms of buildings insurance (which must be conditionally held under terms of the mge contract) - i.e property not to be continually unoccupied for more than 30 days at any given time.


Hope this helps

Holly

dogtanian82

Thanks CapJ and Holly again - both very good points. What a nightmare! Wish I wasn't going now... It's looking as though it may be best to hold off for a few months and then get a better rate when I return.

holly_hobby

That sounds like a good plan !!

Good luck & enjoy Fance

Holly