We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
negative equity - consent to let
dons1983
Posts: 10 Forumite
Having taken a new job, I left my old property and moved to a new city where I have rented a property.
I have rented my property out, and hadn't previously thought to advise my mortgage company. Now I realise that I need a 'buy to let' mortgage, or at least a consent to let from the mortgage company, is this correct?
The problem I think I have is that the flat is in negative equity.
At the time I bought it (2007) I took one of the Northern Rock 125% mortgages (i know, i know....!).
When I moved out, I put it up for sale, but the only offers were WELL below what I paid for it. So my only option has been to rent it out.
For illustration, the flat was bought for £92k, current value circa £80k, and £90k left on the secured/unsecured parts of the mortgage.
The mortgage is costing £641, and rental income in only £525 per month.
Now, with my salary I can absorb this debt/shortfall every month.
However, will N-Ram allow me 'consent to let'?
I want to fo the correct thing, and advise them - but am worried what will happen if they say no. What can they do? Can they make me sell the property at a big loss?
What is the process, do I just phone them up and tell them the whole situation and hope they will give me CTL.
Has anyone else got any experience with this? I'd really appreciate some advice, as I want to get this sorted, but am very concerned at what they might say!
I have rented my property out, and hadn't previously thought to advise my mortgage company. Now I realise that I need a 'buy to let' mortgage, or at least a consent to let from the mortgage company, is this correct?
The problem I think I have is that the flat is in negative equity.
At the time I bought it (2007) I took one of the Northern Rock 125% mortgages (i know, i know....!).
When I moved out, I put it up for sale, but the only offers were WELL below what I paid for it. So my only option has been to rent it out.
For illustration, the flat was bought for £92k, current value circa £80k, and £90k left on the secured/unsecured parts of the mortgage.
The mortgage is costing £641, and rental income in only £525 per month.
Now, with my salary I can absorb this debt/shortfall every month.
However, will N-Ram allow me 'consent to let'?
I want to fo the correct thing, and advise them - but am worried what will happen if they say no. What can they do? Can they make me sell the property at a big loss?
What is the process, do I just phone them up and tell them the whole situation and hope they will give me CTL.
Has anyone else got any experience with this? I'd really appreciate some advice, as I want to get this sorted, but am very concerned at what they might say!
0
Comments
-
You ask for consent to let.
They send you the forms. You fill them in and return them. They tell you if it's been accepted. A fee is paid each year.
I can't remember if you have to have a certain amount of equity in the property, you'll have to ask them, or hope someone in the same position answers your thread.
If it's a flat, did you need and obtain consent to sublet from the freeholder? Ff you did, but didn't, do that now as well.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Yes, I have the leaseholders consent to rent. Just need the mortgage companies also.
Just worried what the situation would be if they say no, and what would happen0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards