Consent to let denied - woolwich

sezzybell

Hi all, just wondering if anyone has any advice on my situation. I have lived in my flat for three years, never missed a payment and recently had another baby. This has led to very little space for us all and it's caused massive amounts of stress. We can't get a house yet as my partner has a bad credit rating and it will take another 2 years for his default to fall off. So we were hoping to rent out the flat and then in turn rent a house for us to all live in with a view to returning to the flat just before the fixed rate finishes in order to review our situation. I spoke to woolwich and the lady was helpful and said it all sounded fine but we have to complete a form which I did ASAP and sent off. Well anyway they have now come back and said that they won't grant the ctl as its an investment property?! Have they misinterpreted something on my form? I'll call them first thing in the morning but just wondering if anyone else has had this? Many thanks :-)

vivatifosi

Hi sezzybell,

You've posted on the wrong forum. You need to be on the one above this about housebuying and renting. You may get answers here, but you will get more there. Can you copy, paste and repost?

sezzybell

I will do that - thanks for your help! :-)

lisyloo

They are saying they won't let you rent it out on a residential mortgage.
You need to get a more expensive "buy to let" mortgage.
Can you tell us the % of your loan to value.
For example if the mortgage was £80k and the value was £100k then you'd have an 80% LTV.
This is crucial as your LTV needs to be lower for btl than it does for residential, so we may be an.e to tell you straightaway if you'll be declined a btl mortgage.
Have you worked out the costs of maintenance, insurance, repairs, legal contracts, fees and tax?

sezzybell

Hi lisyloo, when I purchased the property it was 85% ltv and with the house prices having gone up, I reckon that this is now 65/70% ltv. I worked out all the rental expenses etc and after tax I would probably clear £1000 a year. Nothing huge! ��

Thrugelmir

CTL is for people who are temporarily residing elsewhere, i.e. overseas posting. Not a facility to aid house moves and circumnavigate issues. There' no possibility that they'll grant permission when you have no intention of returning to the property. For a period of time lenders were lax. No longer.