Moving abroad - Consent to Let vs Buy to Let - HSBC

lavend

Hi All,


I currently have a life tracker mortgage with HSBC, have been with them for the last 9 years, clean credit history, mortgage LTV lower than 65%. I'm potentially moving abroad and this may be a permanent move if all goes well. However, I'd like to keep my flat and propose to let it on AST to cover mortgage, service charge and ground rent (yet to do so). I understand from posts in the forum that I could apply for a consent to let from HSBC for 12 months at no charge and thereafter HSBC will move me to a buy to let mortgage. I notice that HSBC charges £2k in set-up fee for BTL which seems hefty for a relatively low risk mortgage given the LTV (and I don't have desire to buy another property in the UK). I am undecided whether to approach HSBC for the consent to let application (as this may reveal my potential change in circumstances immediately). I wonder whether anyone has been in the same shoes and the charges involved when they move from residential mortgage to buy to let with HSBC. If anyone has any other suggestions, more than happy to hear them. Many thanks for your help. Regards.

Guest101

If you're relying on your rent to pay for your flat, and cannot do so from your own earnings. then sell it.

Because you will have void periods, costs, letting agent fees, repairs, tax.

lavend

My overseas earnings should be able to cover the mortgage payments. However, I would rather not do that because 1) I don't want to leave my flat vacant for an extended period and 2) I can use the mortgage payment to buy a new property overseas. The reason I am keeping it is because I really like my flat and I think it is good to have something in the UK should I need to return to the country in the future.

G_M

"because I really like my flat and...." Oops! Too emotionally involved.

However. Apply for CTL and avoid the BTL costs at least for now. In 12 months time, either apply for an extension for a 2nd year, or shop around for a BTL with HSBC or a different lender.

See also

Tenancies in Eng/Wales: Guides for landlords and tenants

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

* HMRC (Non Resident [= overseas] Landlord Scheme)

Guest101

lavend wrote: »

My overseas earnings should be able to cover the mortgage payments. However, I would rather not do that because 1) I don't want to leave my flat vacant for an extended period and 2) I can use the mortgage payment to buy a new property overseas. The reason I am keeping it is because I really like my flat and I think it is good to have something in the UK should I need to return to the country in the future.

Great stuff, but consider this:

Your put the flat up for rent, the agent takes 15% + an upfront fee, it takes 5 weeks to get someone in. So that's 5 weeks of council tax, mortgage, standing charges etc.
Your a foreign landlord, tax needs to be paid on the income.
You need to pay for gas safety certificate. Repairs. You arent there to monitor the flat, tenant trashes it after failing to pay rent for 3 months.
You need to organise eviction, or pay someone to do it.
You need to refurbish it before reletting.

Later:
you want to return, you give tenant 2 months notice, they dont move out, you have to evict (between 6 & 12 weeks). You're left paying for hotel etc.

have you considered these scenarios? it's bad enough being a local landlord...