When to apply for consent to let

clarky_cat

I'm in the process of buying a new house (sent off mortgage doc's on Tuesday). I currently own a flat which I'll be living in until I move. The plan is to rent that out. I've read the threads on this site about what I need to do (Contract, deposit etc) but one thing I wasn't sure of is when I apply for consent to let. I want to avoid moving to a BTL mortgage until my fixed rate is up next year.

The hope is to move on 1st June, I already have a potential tenant lined up. Is it best to wait until the mortgage is approved and survey carried out until applying or should I be doing it now? My lender has advised I need to do this in writing. Also if this is refused, what then? I owe £75k on my mortgage and bought the flat for £92k. I've seen one in the same block advertised for £105k recently so hoping I'd be able to get a BTL mortgage but it would be a close call if the bank didn't value it so high.

japmis

Once you have requested CTL then you can no longer remortgage. I am doing the same thing with my flat as I am working abroad.

When I spoke with Nationwide, they said that I have to apply in writing (after I remortgage my 2 year fixed deal which was due to expire) by filling in an application form. Permission is for a 3 year period after which I am obliged to either return to residing in my property or switch to a buy to let. I don't think you have enough equity to get a BTL mortgage now, so fingers crossed your mortgage provider approves your application!

dwill1503

We have permission to let with nationwide and it was a very simple straight forward process. However, it is only given if you aren't purchasing another property. If you are buying a second home, you must change to BTL.

Brighty

I have consent to let with Nationwide, have done for the last 7 years or so. When the 3 yrs is up, we just renewed, not been forced onto a BTL, they just load an extra 1% on your rate after 6 months.
I relocated up north into rented, but bought a new house there a couple of years later. It didn't even cross my mind to tell nationwide I was buying another place.
I have since remortgaged my current home to nationwide too, so they are fully aware now, was not a problem for them.
To complicate things further, we are moving back down south again, but into a 3rd property we own mortgage free, intend to apply for consent to let for property 2 as well, so 2 properties, both mortgaged with nationwide, both with consent to let. I sent the CTL form off for property 2 stating I wanted to rent it out from Sept, just to make sure it was possible, but they returned it saying they had no issue consenting, but to reapply nearer the time (no more than 2 months I think they said).
Brighty

scoops82

Hi


CTL appears to be at the mercy of your Mortgage provider. I am with Intelligent Finance (IF) and they granted my CTL for a 3 year period and they new I was purchasing another property only 200 yards away.


Like the OP the I have about £75k outstanding on the mortgage but the property is probably only worth £85k so converting to a BTL would be a no go.


IF charge 0.05% of the outstanding mortgage balance every 6 months so when including this charge into your mortgage papyemnts it technically coverts it to a BTL.


I have spoken to IF who said at the end of the 3 years I will need to reapply and they will grant it - the proof will be in 2 years time and if house prices go down (they haven't recovered to what I paid)otherwise I am in the creek without a paddle.

Afrim

Hi there,


Can you please let me know how long the application process took before you have got the permission?


Many thanks

G_M

1) I doubt you'll get CTL. This is intended for people who are temporarily letting the main residence (hence they can stay on a residential mortgage) eg going abroad for a year etc.

If you are buying a new home, then clearly you don't plan to return to the current one in a year or two. Your current property is becoming a long-term or permenant letting business.

You'll need a BTL mortgage

By all means ask Nationwide - they may be flexble, but if you are not open /honest about your plans they may backfire.

2) as to timing, you need to have either CTL or BTL before you start the 1st tenancy. I would wait till you've Completed on your purchase, then apply, and then get the tenancy set up.

3) CTL, if granted, should not tak long. It's a simple yes/no. Switching to a BTL of course will be more involved, with financial checks, maybe a Valuation, and you may decide to look elsewhere besides Nationwide.

Rain_Shadow

G_M taken by zombie.

mefaisalus

I would like to ask a question regarding buy to let consent application with Santander. I have got a residential mortgage with Santander for the last two months with a 5 year fixed deal but due to unforeseen circumstances I have to relocate to a different city because of my job. I have the intention of applying for a consent to let but when I have contacted them I am told I have to wait for 12 months before I can apply as this is a condition on my residential mortgage. However, but I have read all the term and conditions but it doesn't state anything like that. Can you please share your experiences or any advice? has anybody been through the same situation or shall I try again after a month as I cant leave my property unoccupied for 12 months. Your comments will be appreciated. Tia

silvercar

However, but I have read all the term and conditions but it doesn't state anything like that.

Ask them to point out where to find the term in question. That may focus their mind if it is not in print.

Emphasising the job situation may help in obtaining consent.

mefaisalus

but I have read some where they can put any condition against any mortgage its completely on their discretion so you cant challenge it has anybody gone through this situation and has anybody got consent to let from Santander if yes then how sooner please do share your experience