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consent to lease... arrghh!
bigborebri
Posts: 2 Newbie
Hello all,
I hope you can offer some advice, I have a fixed rate mortgage with the halifax which comes to an end soon (5yr fixed at 5.99%), two years ago due to other circumstances I had to move but was unable to sell (another story) and ended up letting it through an estate agent. I got consent to lease and switched to interest only as I rent a flat elsewhere closer to work, the interest stayed at the fixed rate and so far the rent (just!) covers the cost to let...
The problem is when my fixed rate ends the halifax will give me a months grace on the SVR (huge saving in comparison) but then I must switch to one of these consent to lease mortgages... Which surprise surprise is even higher interest than I. Im already paying :-(
I don't really want to stay with Halifax but can't afford any huge fee's etc.
Also I think a buy to let mortgage is out the window because my LTV is about 85%
Any suggestions? At present I have a tenant so can't try and re-sell without booting them out (which would leave me out of pocket), and until they leave me in the lurch im stuck in this no man's land unsure what to do next :-S
I hope you can offer some advice, I have a fixed rate mortgage with the halifax which comes to an end soon (5yr fixed at 5.99%), two years ago due to other circumstances I had to move but was unable to sell (another story) and ended up letting it through an estate agent. I got consent to lease and switched to interest only as I rent a flat elsewhere closer to work, the interest stayed at the fixed rate and so far the rent (just!) covers the cost to let...
The problem is when my fixed rate ends the halifax will give me a months grace on the SVR (huge saving in comparison) but then I must switch to one of these consent to lease mortgages... Which surprise surprise is even higher interest than I. Im already paying :-(
I don't really want to stay with Halifax but can't afford any huge fee's etc.
Also I think a buy to let mortgage is out the window because my LTV is about 85%
Any suggestions? At present I have a tenant so can't try and re-sell without booting them out (which would leave me out of pocket), and until they leave me in the lurch im stuck in this no man's land unsure what to do next :-S
0
Comments
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I'm afraid I think you have summed itup:
* obtain CTL from current lender and fund the increased payments
* switch to an alternative lender - very hard if insufficient LTV for a BTL mortgage. Consult an independant mortgage broker
* sell with tenant in situ to another landlord (usually at a discount on price)
* evict tenant and sell on open market (but fund mortgage pending sale)
* move back in yourself
Are there other ways to decrease your costs? Sack your letting agent and manage it yourself (save 10-12%)?
Ensure you are claiming all allowable expenses to reduce your tax bill on the rent?
Check you are charging (near) market rent to your tenant?0 -
Is the property big enough for you to have one or more lodgers if you moved back in, so that the additional income could offset the travel costs that you'd incur by being further away from your workplace?0
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Thanks for the reply's... As I feared not many options :-(
Moving back in is completely out the question as I live other side of the country, as is sacking off the estate agents as I live to far away to look after the place...
Does anyone have any experience shopping around for consent to lease re-mortgages?
p.s. What tax expenses can I claim?? :-B0 -
Follow the HMRC links in this post here.bigborebri wrote: »
p.s. What tax expenses can I claim?? :-B0
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