Declined Consent to Let

Legacy_user

Hi Everyone

I bought my flat in May 2016 with a 5% deposit to get me onto the property ladder. A few months ago I told Santander (my mortgage lender) that my circumstances would be changing soon, as I want to rent my flat out to move back with parents and go to university in september 2019. On the occassions I spoke to Santander they said “It is subject to an application but it shouldnt be a problem - ring us nearer the time you want to rent it out”. So i called them last monday the 17th, to tell them id like to apply for consent to let. They asked me 3 questions which were: Are the tenants council tenants, will your mortgage term expire in the next 6 months, and will the property be let out to multiple tenants. They then placed me on hold and told me i had been declined, due to my LTV being 93%, and its needs to be 90% or less to be able to be accepted for consent to let. They said I can appeal the decision by writing a letter, which I have sent to them but the timescales are 7-10 working days for a response. This has left me in such a difficult situation because I have found the perfect tenants and ive arranged to go part time at work to support my current studies. Has anyone else had experience of this? Or where the appeal has been overturned?

Thanks in advance

Farmer_Johnson

You’ve really jumped the gun getting tenants in before you had an agreement to let. There’s no harm in appealing, but what is your argument going to be as to why they should change their decision? You wanting it needing it won’t be viewed as a good reason for them to reconsider.

Other options incluse seeking a buy to let mortgage elsewhere or finding the 3% that you need to fit within their criteria.

G_M

You also jumped the gun by not doing your research. It would not have been hard to find out that Santander require a LTV of 90% and you would then have known where you stood.


Your best option now is to reduce your mortgage own to 90% LTV before you try appealing. Appealing against their policy is not likely to change that policy.

Barny1979

Good luck, my experience of Santander's mortgage team is that they're a shower

csgohan4

The lender's money, their rules, not much you can do, never depend on CTL, it never is permanent when you do get it.

eddddy

Rca194 wrote: »

They said I can appeal the decision by writing a letter, which I have sent to them but the timescales are 7-10 working days for a response. This has left me in such a difficult situation because I have found the perfect tenants and ive arranged to go part time at work to support my current studies. Has anyone else had experience of this? Or where the appeal has been overturned?

It doesn't sound like you're offering any basis for an appeal. (e.g. you don't seem to be saying they've made a mistake, or they're breaching the terms of the mortgage etc.)

One possible basis for an appeal might be that they are undervaluing the property, because it's worth more now than when you bought it - so it's actually less than 90% LTV.

But if you go down that route, I suspect you'll have to pay for a revaluation - which may or may not go your way.

[Deleted User]

Sell the property rather than rent it out?

Ozzuk

Is it worth renting out at 93% ltv? It is only an assumption as we don't know the figures, but if you have that high a mortgage it doesn't sound like a money maker once you factor in tax, costs to get it ready, void periods etc. As above, might be better to sell, not have the hassle/risk.

AdrianC

Posts 7 & 8 nail it.

Why are you considering renting? Have you actually done the sums? You do NOT need the hassle of being a landlord while you're trying to go through uni.

What are you going to do when the tenants finally do a runner on the eve of the possession hearing, leaving you with a large amount of unpaid rent, and a trashed flat? How will you have been paying the mortgage?

Thank the lender for making what should have been an obvious decision even easier, sell the place, and focus on doing one thing at a time.