Additional Borrowing on a Consent to Let

bettie_paige_2

Hi all,

Due to my partner being in the military and posted in the south coast my London property is rented out on a residential mortgage with consent to let given. We have bought a second property in Hampshire and fully intend to return to the London property in a few years as he will be posted there. (At this point may rent out or sell the house).

I am planning to take some equity out of the London flat and was wondering if I would be able to do this with my existing mortgage (fully accept that the further borrowing could be on a higher rate, as I am on a very low standard variable rate right now) or I would need to convert it all to a BTL mortgage. If this was the case I'd need to look again at how much I could take out - I do not make any profit on the property whatsoever so I am not hit with a large tax bill.

Any advice gratefully received

Bettie

kingstreet

The only way to get a definite answer on this is to ask the lender. In any other circumstances, I'd say the chances are nil. However, some lenders treat services personnel differently and accept them letting on a residential product while posted.

I'm not so sure this is designed for multiple property ownership though.

holly_hobby

Traditionallly CTL is for accidental landlords, and accordingly is generally for a max period of circa 3 yrs, when it either reverts back to your primary residence, is sold or if still let, tsfd onto a BTL mge.

Seeking to release further equity whilst under a CTL agreement, usually means that the lender will seek to apply BTL mge/rates - however the fact we have forces personnnel in the mix, with as you say a definitive return date, may well make this the exception to the rule.

Apart from the LTV aspect, I do think it will hinge on what the extra borrowing is for, and whether it will remain self servicing (rental income wise) as a result of the increased borrowings.

As Kings states .... only one way to find out .......

Hope this helps

Holly

Dave_Ham

It will all depend upon the lender, as some are more forces friendly than others.

How are you not making a profit on the rent if you are on a low rate tracker and have equity?

All the best