Consent to Let

w00519772

I was reading about consent to let recently. I have two questions:

1) I received a flyer through my door from this company recently: http://pridea.co.uk/who-are-we/. They say: "we'll let your property for free!". What does this mean? They will find tenants?
2) I had a call from another estate agent recently saying they would find tenants and guarantee my rent each month. How much does this typically cost (% of rent).

I am trying to understand what services an estate agent provides from a lettings point of view and I am particularly interested in the two points above, which appear to be the two extremes.

csgohan4

if it's to good to be true....

kiddafunk

They sound like rent-to-rent schemes.

Basically, you hand your house over to someone who guarantees to pay you a certain amount each month. They'll sub-let it from you and find/manage their own tenants.

The idea is that they'll find individual tenants for individual rooms and charge an 'all in' price which should net them some profit after they've given you your guaranteed fixed amount each month.

Some people like the idea of having a guaranteed income every month without the hassle of managing tenants etc.

csgohan4

but if you need to evict them all, that may be a pain

kiddafunk

csgohan4 wrote: »

but if you need to evict them all, that may be a pain

Yep, comes with risks.

foxy-stoat

Either do it yourself or through an agent that local folk can recommend.

Guarantee rent schemes are ok if your mortgage is low and your out of the country say, but sub letting may not be allowed, and you wont have a clue who is in your property.

You pay for it on a guarentee rent scheme, a lot, for my old 3 bed house in Sussex I used to get £800 a month every month, if I used a local firm who said that "we become your tenants" I would of got £250 in month 1 and £590 for the other 11 months and I would be liable for utilities and council tax for voids - so they wouldnt become my tenants....my lender wouldnt of been happy with the contract either after reading their terms on the Consent to Let.

Good lucks however you go - be sure you crunch the numbers if your buying a second property and know how much tax you will have to pay.

w00519772

foxy-stoat wrote: »

Either do it yourself or through an agent that local folk can recommend.

Guarantee rent schemes are ok if your mortgage is low and your out of the country say, but sub letting may not be allowed, and you wont have a clue who is in your property.

You pay for it on a guarentee rent scheme, a lot, for my old 3 bed house in Sussex I used to get £800 a month every month, if I used a local firm who said that "we become your tenants" I would of got £250 in month 1 and £590 for the other 11 months and I would be liable for utilities and council tax for voids - so they wouldnt become my tenants....my lender wouldnt of been happy with the contract either after reading their terms on the Consent to Let.

Good lucks however you go - be sure you crunch the numbers if your buying a second property and know how much tax you will have to pay.

I have generated a quote here: http://www.legalandgeneral.com/insurance/landlord-insurance/

The result was: £566.94 per year or £51.27 per month (building insurance, contents insurance and rent guarantee for a property in Lincolnshire) assuming rent of £700 per month. This seems low based on what Foxy-Stoat said above. Is it low?

AnotherJoe

w00519772 wrote: »

I was reading about consent to let recently. I have two questions:

1) I received a flyer through my door from this company recently: http://pridea.co.uk/who-are-we/. They say: "we'll let your property for free!". What does this mean? They will find tenants?
2) I had a call from another estate agent recently saying they would find tenants and guarantee my rent each month. How much does this typically cost (% of rent).

I am trying to understand what services an estate agent provides from a lettings point of view and I am particularly interested in the two points above, which appear to be the two extremes.

All pertinent questions, but pretty much nothing to do with the title of your thread.

Note also its likely that even if you get CTL, it will be for a short period, maybe a year or two and then you'll have to go to BTL mortgage (higher rates) for which the rules are getting stricter every year. That may also apply to CTL now.

w00519772

AnotherJoe wrote: »

All pertinent questions, but pretty much nothing to do with the title of your thread.

Note also its likely that even if you get CTL, it will be for a short period, maybe a year or two and then you'll have to go to BTL mortgage (higher rates) for which the rules are getting stricter every year. That may also apply to CTL now.

The bank offers consent to let for three years. I have 3.5 years left on my mortgage. I am thinking about using Consent to Let in 0.5 years. I guess the title of the question is too broad.

w00519772

Is it permitted to rent out your current property using consent to let and then buy another property in another city?

I spoke to my lender today. The first advisor I spoke to said no. Then he put me through to another advisor (as I had another question) who said it is discretionary. He said that as you are moving to another city (about 50 miles away) for work then you should be able to buy.

I am not planning to do this at the moment. Just thinking about my options for the future.

silvercar

Is it permitted to rent out your current property using consent to let and then buy another property in another city?

Some lenders will agree, some won't. For some it may depend on the cirumstances eg working in a new location, caring for relatives etc