Consent to let problem

ele_91

I am in a difficult situation with consent to lease.

I bought my property almost two years ago under the government mortgage guarantee scheme.

Last November I was made redundant and the new job. I was offered required a relocation. I understood I was unlikely to get consent to let under the guarantee scheme and considering I needed the job I have been letting the property without consent.

It's now almost a year later and I want to get consent.

My options are:

1) Apply now, risk being turned down then be stuck
2) Wait until December when I can move to a different mortgage (fixed term ends) - presumably not being bound to the conditions of the scheme
3) Carry on without consent.

My main reason for getting consent is that I want to sell next year and am going to find it difficult to sell without the permission of the lender, but can't afford to have the property empty whilst it sells.

Does anyone have experience of gaining consent under the guarantee scheme? And which option would you choose?

glosoli

Option three frankly would be irresponsible. If your fixed period ends in December, why not initiate the process now so that things are ready to be transferred over in December?

ele_91

Sorry - I meant I can start the process in December as I'll be in the last part of the fixed term.

The good news is I am earning double the salary I was when I bought the house and therefore have been overpaying and have quite a bit of equity/savings, therefore remortgaging shouldn't be an issue.

Lysimache

Are you going to be getting a new mortgage for your new place?

Would the rental income be spotted on your bank statements when you apply for a new mortgage and they do affordability checks?

Caz3121

have you been following the landlords responsibilities, gas checks, landlord insurance etc, declaring rental income for tax?

ele_91

Yes I will be getting a mortgage but that's why I want to sort the consent to let issue before I buy and sell.

Secondly I have paid tax on income, have regular gas checks, PAT testing etc, insurance etc. I am aware of the risks and I have a good tenant. Not looking for a lecture on being an irresponsible landlord, more the timing of application for consent.

Thrugelmir

You'd be better applying for BTL. As one assumes now you've relocated you won't be returning (ever). CTL is a temporary arrangement.

kingstreet

The Mortgage Guarantee runs for seven years from completion, so AFAIK you will have to remortgage to a new lender to have any chance of consent to let.

chappers

ele_91 wrote: »

but can't afford to have the property empty whilst it sells.

what will you do if your tenant exercises their right to quiet enjoyment and refuses to allow viewings?

ele_91

Thrugelmir if you read the OP I am selling the house next year.

Kingstreet as far as I'm aware I can switch my mortgage in December

Chappers another option is that I can move back in to my house and get a Mon-Fri let whilst I sell, but this is complicated.

I see there is no constructive advice here...

Thrugelmir

ele_91 wrote: »

Thrugelmir if you read the OP I am selling the house next year.

Still provides no reason for the lender to grant you CTL. The lender doesn't know if you will sell the property or not. As just your word. Which based on events to date isn't going to instil confidence. As you've broken their trust. If CTL is granted then an interest loading could be applied. Resulting in little difference to a BTL.

In essence you are at their mercy. As are in breach of your mortgage contract. If you prepare for the worst then hopefully things will turn out for the better.