Consent to Let & Selling Property

amnblog

Floxxie wrote: »

I'm about to ask my lender if I can have consent to let out my property.

However I currently have the property for sale but there is no interest and paying a full mortgage, council tax and unoccupied insurance on an empty house is draining me financially.

I understand that I have to be considering moving back in the future. What position would the lender take if I have the house on the market?

The lender is Woolwich.

Woolwich will typically give consent for up to two years and tend not to apply extra fees or costs.

However, there is no contractural position, all you can do is ask.

Floxxie

Just following up on what happened next....I asked Woolwich for consent to let and explained that my ex-husband has no legal or beneficial interest in the property. They said, we need his signature. I said, well you are not going to get it. They said, we have noted that you have an unauthorised tenant in the property

I have now moved tenants in and have the property on the market. I called Woolwich to ask if I could cancel my Direct Debit as my tenants are paying them direct by standing order. Not a problem.

I wonder why I wasted so much time worrying about it

scottishblondie

Floxxie wrote: »

I called Woolwich to ask if I could cancel my Direct Debit as my tenants are paying them direct by standing order.

This seems incredibly risky. What if they cancel the SO and don't tell you... you're the one who will end up with a black mark on your credit history!

anselld

Floxxie wrote: »

Just following up on what happened next....I asked Woolwich for consent to let and explained that my ex-husband has no legal or beneficial interest in the property. They said, we need his signature. I said, well you are not going to get it. They said, we have noted that you have an unauthorised tenant in the property

I have now moved tenants in and have the property on the market. I called Woolwich to ask if I could cancel my Direct Debit as my tenants are paying them direct by standing order. Not a problem.

I wonder why I wasted so much time worrying about it

Hopefully you are also paying income tax on the profit. Only the interest element of the mortgage is tax deductible. The remainder, less any other costs is taxable even if you never see it!

ethank

I would never pay the mortgage in that way!

Floxxie

I think I can handle the risk of receiving a letter to say the standing order hasn't been paid, rather than paying an additional amount on Direct Debit.

And yes I have registered with HMRC.

silvercar

Does the rent payment exactly equal your monthly mortgage payment?

amnblog

On no account should you rely on your tenants to make the mortgage payments direct.

Floxxie

silvercar wrote: »

Does the rent payment exactly equal your monthly mortgage payment?

No it does not, it is much higher and is paid two weeks before the mortgage lender requires payment.

Floxxie

amnblog wrote: »

On no account should you rely on your tenants to make the mortgage payments direct.

I'm not relying on them to do so, it just makes my life a lot easier if they do.