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Consent to Let
ChampagneFever
Posts: 32 Forumite
Due to being in negative equity, i am looking to let my property out. I have a potential tenant lined up. I've phoned the mortgage lender and they said i could apply for Consent to Let and sent the forms out. When i received the forms one of the criteria that they ask to be met is that rent income covers the mortgage payment. Unfortunately my mortgage payment is £525 but the rent from possible tenant is £450. I dont think i could increase the rent any more. My property is a 1 bed flat and a 2 bed flat nearby is available for £475/£500 so id struggle to find a tenant if rent is £525 or more.
Is this a stumbling block for my application for Consent to Let? Dont want to pay admin fee if its going to be rejected. If rejected, i dont know what i can do with the flat. What is mortgage lendors protocol in this situation?
Is this a stumbling block for my application for Consent to Let? Dont want to pay admin fee if its going to be rejected. If rejected, i dont know what i can do with the flat. What is mortgage lendors protocol in this situation?
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Comments
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Every lender has different criteria so it's not possible to second-guess what their decision is likely to be.0
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How do you plan to fund the shortfall?
Is there a possibility you can change to an interest only for a while until you sort your finances out?0 -
If the OP can't afford to fund £75 a month, then they are in a much worse position than just that negative equity.
Still, I find it hard to believe that rental-rates are so much less than the mortgage on an equivalent property when interest-rates are at a historical low. Something isn't adding up.0 -
And where does this property that you have already rented out for the last 4 years come into the equation?
https://forums.moneysavingexpert.com/discussion/4631733=0 -
Are these threads genuine?0
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Now tenant is moving out, i want to make sure everything is done right if i continue to let.0
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I can afford the shortfall. But if they do any credit checks due to the shortfall, it wont look pretty.0
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As was pointed out in the other thread, you do know the rental income should be declared to HMRC, even if it doesn't cover the full mortgage payment (only the interest portion can be offset against tax)?0
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Yeah the revenue are aware that im receiving income but due to rental expenses (mortgage interest + repairs), there has been no tax liability.0
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Would the mortgage company reject an application for Consent for Let over a £75 shortfall? Clearly me paying £75 a month is more affordable than £525 a month.0
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