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Consent to Let
tasha35
Posts: 10 Forumite
Hi,
I wonder if you can advise please. We seem to be stuck between a rock and a hard place.
We have a fixed rate on our mortgage that ends 31/08/2020, we are on under 2% apr.
We are changing careers and hopefully moving to the south west.
We would like to rent our property out whilst we find iur feet in our new careers and location.
However, we appear to have a slight issue. We can do a consent to let starting August 2019, that could be valid for up to 3 years. This means we keep the rate we are in now plus 1% to change the terms.
The concern is when that comes to an end next August when the fixed rate is up, we’ve been told if we are on a consent to let we cannot do a new deal, we’d have to sit on the variable rate which is around 4-5% plus the 1% for the let.
This seems crazy that we are forced into the rate when there are better deals.
There could maybe be the option to do a buy to let, but we are not buying a new property yet, we were going to rent in the south west for the first few years, but as it stands the profits we hope to have made will now be non existent in year 2.
Is there anything we can do?
Our salaries are going to be lower as we are starting from scratch so I’m worried that a buy to let won’t even be feasible esp when we are doing a let to let.
Hope that makes sense.
I wonder if you can advise please. We seem to be stuck between a rock and a hard place.
We have a fixed rate on our mortgage that ends 31/08/2020, we are on under 2% apr.
We are changing careers and hopefully moving to the south west.
We would like to rent our property out whilst we find iur feet in our new careers and location.
However, we appear to have a slight issue. We can do a consent to let starting August 2019, that could be valid for up to 3 years. This means we keep the rate we are in now plus 1% to change the terms.
The concern is when that comes to an end next August when the fixed rate is up, we’ve been told if we are on a consent to let we cannot do a new deal, we’d have to sit on the variable rate which is around 4-5% plus the 1% for the let.
This seems crazy that we are forced into the rate when there are better deals.
There could maybe be the option to do a buy to let, but we are not buying a new property yet, we were going to rent in the south west for the first few years, but as it stands the profits we hope to have made will now be non existent in year 2.
Is there anything we can do?
Our salaries are going to be lower as we are starting from scratch so I’m worried that a buy to let won’t even be feasible esp when we are doing a let to let.
Hope that makes sense.
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It seems like you cant afford both rent and mortgage, so why are you even considering this?0
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We can for the 1st year, it is just going to be tight for year 2.
We wanted to rent our house to ensure that if it didn’t work out in the south then we can afford to move back up the south east. If we sold straight away and it didn’t work out then we could never afford to buy back up.
We were doing it as a safety net, but there is obviously an issue, so was seeing if there were any options I’d not thought about.0 -
We can for the 1st year, it is just going to be tight for year 2.
We wanted to rent our house to ensure that if it didn’t work out in the south then we can afford to move back up the south east. If we sold straight away and it didn’t work out then we could never afford to buy back up.
We were doing it as a safety net, but there is obviously an issue, so was seeing if there were any options I’d not thought about.
But if it doesn't work out, what will you do for the 6-9 months it takes to get your property back?0 -
why would it take 6-9 months to get our property back? We reverse the consent to let to residential and move back. We’ve been assured we can do a short get out clause with tenants by the 2 agencies we’ve spoken to.
Ok, either way, it appears there are no other options so thanks0 -
The length of time to get your property back depends on your tenants. The vast majority of tenants, when given a two month Section 21 notice, will move out at the end of the two months. They don't have to. Many tenants know this, and many on this site advise tenants of this fact. If the tenant drags their heels, it can take 6-9 months to get rid of them. Are you prepared for that?
You could use Section 8 Ground 1 instead, as you have lived at the property and want to repossess for the purposes of living there, but only if you tell the tenants about it before they sign their tenancy agreement (putting it in the tenancy agreement is the easiest way to do this). I don't believe it's any faster than Section 21 eviction though.0 -
Ok thanks. Good to know.0
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why would it take 6-9 months to get our property back? We reverse the consent to let to residential and move back. We’ve been assured we can do a short get out clause with tenants by the 2 agencies we’ve spoken to.
Ok, either way, it appears there are no other options so thanks
because that is the average eviction time in england and wales...0 -
The length of time to get your property back depends on your tenants. The vast majority of tenants, when given a two month Section 21 notice, will move out at the end of the two months. They don't have to. Many tenants know this, and many on this site advise tenants of this fact. If the tenant drags their heels, it can take 6-9 months to get rid of them. Are you prepared for that?
You could use Section 8 Ground 1 instead, as you have lived at the property and want to repossess for the purposes of living there, but only if you tell the tenants about it before they sign their tenancy agreement (putting it in the tenancy agreement is the easiest way to do this). I don't believe it's any faster than Section 21 eviction though.
it's no faster, it just mean you can get around the other requirements for a valid s.210 -
So you have this property that you bought to live in?
You now want to move but keep the property. What makes you think that this is a suitable property to be used as a rental property? The problem is that people who are successful landlords do a lot of research on their tenant market, the likely rent levels and whether they will get a decent return. What they don't do is to buy a random property let it and hope it will turn out alright. You are thinking of doing the random property thing.
What are you going to do if the tenants don't pay the rent and what are you going to do if the property gets wrecked?0
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