Consent to Let

Dougy

Hi

Has anyone had an dealings with Briattania lately in regards to consent to let ?

Last year when I enquired it only cost £40 but now they want to increase your interest rate by 1% and the rent must be for 125% of the mortage.

If I can stay on the rate I am on I can get rent for 115% (repayment and interest) and also manage the payments myself if there are any void periods, whilst with the increase in interest I will probably find this a stretch.

I know other providers have occasionaly been lienient with there terms and was wondering if anyone had found Brittania the same ?

I only want to do this short term 12/18 months until I'm out of my ERC period and then I will be looking to sell the property again (I have been trying to sell now for a year and had no joy).

In the mean time me and my partner are in the process of buying a house together which is slightly closer to work and a much bigger property and as we work for the same company will save us a fortune in petrol ! (the bank have factored in my mortgage when agreeing to borrow us the money so I'm not worried about that side of things), but this is why I would ideally like mine to be rented out as I will be contributing to the bills for the new house as well and was hoping that I could save up 6 months worth of mortage payments whilst my flat is being rented out so that it will pay for itself when I look to re-market it to sell.

My only other option is to leave it on the market and cut the price (again) but this will mean I'll be stuck paying the mortgage until it sells and most likely that I will also have to get a loan out to pay the remainder of the mortage off plus the ERC's I'll incurr at present, although it is not in neagtive equity I don't think I'll be able to sell without dropping it below the market rate (which I can't really complain about as this is how we have been able to afford our new property)

Also does anyone know when they say 125% does this mean of the whole mortgage payment or just of the interest ? as I've looked on a few sites and they say it only has to cover 125% of the interest side of the loan but was wondering as I'm on a re payment mortgage if this would be different

Any constructive advice would be greatly appreciated

Fire_Fox

Welcome! If you post your Rightmove link we can critique that rather than cutting the price? Have you decluttered, spring cleaned, finished all those niggly DIY tasks, lightened and neutralised the decor? Presumably you have checked you don't need the freeholder's consent to let the flat?

Have you considered what will happen if tenants don't pay rent or trash your flat, you get made redundant, fall ill or injured and cannot work, your partner falls pregnant and is ill throughout or you have a sick baby and she cannot work? With rent coming in and a property you don't live in you will not be eligible for many means tested benefits. Could you handle your mortgage(s) if things go wrong?

G_M

Most lenders these days want rent of 125%, and many will increase the interest rate and/or charge a fee.

Notmyrealname

Dougy wrote: »

Last year when I enquired it only cost £40 but now they want to increase your interest rate by 1% and the rent must be for 125% of the mortage.

You will not find any BTL mortgage anywhere which is any different. The 125% requirement is 125% of the monthly mortgage interest, not the whole payment if on a repayment mortgage.

Remember only the interest is claimable so if you spend £500 a month on a repayment mortgage of which £125 is interest and the rent is £500, you can't claim the whole lot for a net profit of £0, your profit for taxation would be £375. You would be then billed accordingly and have to find the tax money from your other income.

franklee

Dougy wrote: »

My only other option is to leave it on the market and cut the price (again) but this will mean I'll be stuck paying the mortgage until it sells and most likely that I will also have to get a loan out to pay the remainder of the mortage off plus the ERC's I'll incurr at present, although it is not in neagtive equity I don't think I'll be able to sell without dropping it below the market rate (which I can't really complain about as this is how we have been able to afford our new property)

Surely the market rate is what it would sell for in a reasonable amount of time? Therefore arguably you paid the market rate for your new property and by lowering you could sell the old one at market rate Sounds like you had a realistic vendor other properties may be on the market higher but did they sell?