Consent to Let

_Andy_

ChampagneFever wrote: »

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.

No idea - you need to ask the lender. No point in anyone here speculating, doesn't gain you anything

ChampagneFever

I dont want to waste money applying if rejected. That would pay for the valuation report required to get their permission to sell.

_Andy_

No-one here is going to be able to give you a definitive answer.

Werdnal

Leaving your consent to let issues aside, I think renting out this property is a major financial risk for you. You seem to have very little spare cash, so what is going to happen if the property needs a major repair, or your tenant suddenly stops paying the rent? You say you would struggle to find the extra £75 a month - how are you going to cover the mortgage at all if the rent dries up altogether? Where are you living in the meantime? How will you afford that, a mortgage, a major claim for repair or a court case to get a non-paying tenant evicted - all with possibly no rent coming in?

You claim to have already let this property without consent for the last 4 years, and I think if money is as tight as it sounds, you have been very lucky not to get badly stung before. Letting is by no means guaranteed income, and I think you do not have the financial reserves to do it properly. If you are already struggling with your cashflow, letting a property will quickly drown you.

Oh, and that is if your previous tenant with the non-protected deposit doesn't cotton on the the chance to sue you for 1-3x for failing to use a deposit scheme ...

I think you are trying to live the "Champagne" lifestyle, on lemonade budget.

Annisele

ChampagneFever wrote: »

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.

Not necessarily. It's not just a comparison between £75 a month and £525 a month. It's "live in your own house and pay £525" next to "live in another house, pay for that other house, and top up mortgage by £75 a month".

ChampagneFever

Ideally i would like to sell and not have the financial worry or the burden of letting hanging over us. Financially we could manage at the moment, but like you say the reserves arent there if appliances need replaced or the property is empty for a couple of months.

Id like to sell but with the property market in that area, it isnt very reassuring. If i was to put it up for sale, I dont know if id get an asking price close to the outstanding mortgage, and dont know how long it will take to sell, if it would sell at all. And financially i cant afford for it to be sitting empty until its sold.

Turnbull2000

ChampagneFever wrote: »

Ideally i would like to sell and not have the financial worry or the burden of letting hanging over us. Financially we could manage at the moment, but like you say the reserves arent there if appliances need replaced or the property is empty for a couple of months.

Id like to sell but with the property market in that area, it isnt very reassuring. If i was to put it up for sale, I dont know if id get an asking price close to the outstanding mortgage, and dont know how long it will take to sell, if it would sell at all. And financially i cant afford for it to be sitting empty until its sold.

Think of it as a long-term pension plan. Rents will likely rise enough to cover your mortgage in a few years time, so apply for permission then. In the meantime, view the shortfall as contributing to a personal pension. Remember, at the end of this you'll benefit from a inflation proofed rental income throughout retirement.

ChampagneFever

I had considered keeping it as a pension. However the consent to let is for a maximum 4 year period. At which point to continue letting id need to switch to a buy to let mortgage. Unfortunately due to the LTV % on buy to let mortgages, I seriously doubt this will be an option in 4years time.

Mortgage payments are also currently on SVR and with negative equity cant remortgage or change product, so im vulnerable to the increase in interest rates.