Consent to let?

lesterxburnham

I've got a mortgage with HSBC and want to buy another property. I was hoping to rent out my current property so thought I will need to convert my current mortgage into buy to let.

So, I contacted HSBC about that and was told that I can't convert my current mortgage into buy to let and that would be only possible after I take residential mortgage for new property and live there for 6 months.

In the meantime though, they told me that I could get consent to let on my current property. I asked about requirements for consent to let and they said that it varies so I'll need to apply and then they tell me if I can get it. Does anyone have any experience with similar situation? Is it easy to get consent to let? what does it entail financially?

Lilla_D

Lenders are normally ok to give consent to let when someone has a genuine case of moving house after a certain period of living in the property and they either can't remortgage to a BTL deal or it's not practical for them due to being in a deal with an ERC attached.

The application / admin fee is normally nominal, but some lenders increase the interest rate when there is a consent to let in place. Not sure about HSBC, but they should advise you about the financial implications.

lesterxburnham

thanks for reply genuine case is rather broad term, my reason to move is that I want to buy another property and start renting out current one - do you think this would classify as a genuine case?

Lilla_D

Yes, that would normally classify, unless you recently moved into the current property I realise that "recently" is also a broad term, but most lenders don't really like it, if you only moved in within the last 6-12 months and now you want to rent it out. Their argument is that you should have known that you were going to rent it out, so you should have got a BTL mortgage to start with. Does it help?

lesterxburnham

it does indeed, thank you

lesterxburnham

so bank gave me consent to let under following condition:

"Bank consent to the property being let provided that the agreement does not result in the tenant having the benefit of any security of tenure over and above the contractual term of the tenancy"

can someone help me understand what it means please?

DeterminedSingleMummy

Hello. I can't help you with what that means but I do have a question. Did the bank say how long the "consent to let" was for?

I am hoping to get the same for my property once I find somewhere else but would rather do a consent to let than convert my mortgage to a buy to let...

lesterxburnham

I got it for 12 months