pro forma letter to notify mortgage lender desire to rent the property out

oztrip

In the last three years had a mortgage for an extension for our house in which we have lived in for 26 years, which represents less than 10% of property value and we have moved abroad and wish to rent the house out, but we need to write for their permission to do so. Our plans are not fixed but under review on a yearly basis, does anyone have a pro forma letter to notify HSBC of our change of circumstances as we do not want our mortgage to be changed to buy to let?

marksoton

I bet you don't. But consent to let is at the lenders discretion and will have a time limit imposed on it.

Have you fully considered the implications of being a LL. Especially from so far away?

davidmcn

oztrip wrote: »

In the last three years had a mortgage for an extension for our house in which we have lived in for 26 years, which represents less than 10% of property value and we have moved abroad and wish to rent the house out, but we need to write for their permission to do so. Our plans are not fixed but under review on a yearly basis, does anyone have a pro forma letter to notify HSBC of our change of circumstances as we do not want our mortgage to be changed to buy to let?

I would phone them to check what they need - they'll probably want information or undertakings which you haven't thought of, or to complete their own form.

Bossypants

I would suggest giving them a call, but in my experience they don't need much. I can't find the letter I wrote originally, but it was only a couple of lines, something like:

"Ref [Mortgage account and sort code]

Dear [Head of Mortgage Dept],

I am writing to request consent to let the above property (currently my main residence) for a period of six months, as I have taken a job across the country but am unsure whether I will remain there beyond the initial six months. Please confirm back in writing whether consent is granted.

Yours faithfully,

[Bossypants]"

I obviously also had the To and From address at the top.

That was all they needed (I was also with HSBC), I got confirmation back in the post about a week later. Bear in mind that generally they will grant consent for a maximum of 12 months, so if after that you still want to let the property, you will need to get a proper BTL mortgage.

oztrip

Thank you.

G_M

oztrip wrote: »

In the last three years had a mortgage for an extension for our house in which we have lived in for 26 years, which represents less than 10% of property value

Totally irrelevant. You have a residential mortgage on the property.

and we have moved abroad and wish to rent the house out, but we need to write for their permission to do so.

Don't write. Speak. If they say they might consider it, they'll then tell you what documentation they need to make a firm decision.

we do not want our mortgage to be changed to buy to let?

Indeed. But you need to accept it's a possibility.

Now see:

* Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

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

FBaby

Most lenders will agree to it without trouble. The issue comes when either your mortgage deals come to an end, at which case, they will ask for proof of address and if you are still not residing there, it is unlikely they will renew consent to let, or it's been 2/3 years plus (if on a fix mortgage) and they have a system in place to pick up consent to let agreed for longer than that term or they do random checks.