consent to let

BoarderGaz

Hi,

Bit of a confusing one this so bear with me while I try to explain..,

My girlfriend owns a flat with her ex boyfriend. The LTV is currently at110% She has tried unsuccessfullyto sell the property to break even but now we are together, we want to keep itas a rental investment and buy another place.

The first issue we came across was trying to get a transfer of equity totake her ex of the mortgage and put mine on - C&G said no because the LTVwas too high. We thought having my name on would be better for C&G as mycredit is good and I am in full time employment but apparently C&G wouldrather keep the ex with poor credit history and no job!

Now we want to ask for consent to let from C&G but we are concerned thather ex's poor credit and current unemployed status could prevent them giving uspermission. We don't have enough money to pay off enough of the mortgage to get a BTL mortgage so hence the need for C&G to grant us consent to let.

So the question is - what will C&G look at when deciding whether or notto grant us permission? Will they have the flat valued to check the LTV? Willmy girlfriend and her ex be credit checked? (Hers is fine but his probablyisn't!). Her ex has not contributed towards the mortgage for 4 years now andthey left on good terms so we are confident he will give us his permission tolet the flat.

Thanks in advance for your replies.

Gareth.

princeofpounds

They would look at things like LTV, and the likely rent/mortgage ratio to ensure appropriate coverage. Basically they normally require CTL or BTL mortgages to be just a litle bit safer than residential ones as letting is a bit more risky and complex, involving a third party and different rules and all. I think it is unlikely they will give it to you.

Letting out with the ex still on the deeds is really complex. He would still be a part owner/landlord and can pop up at any moment to claim half the rental proceeds (did you think about that?)

Seems very premature to even think about buying another property when you don't have enough resources to build any equity in the one you do actually own!

You are best off trying to work yourself into a position where C&G will allow the mortgage/property transfer over to you. Did you get any indication from them where the issue was? If you have a deposit for a new house, did you indicate that you could sink it into the old property to raise enough equity to allow sale?