Consent to let for enabling new property purchase

JJPA

Hi

My wife and I are looking to move found and have found a property we would like to purchase. The seller is looking for a relatively quick sale, however houses where we live typically sell pretty quickly under normal circumstances. The key phrase there being "normal circumstances". Along comes this coronavirus, and I'm no longer so confident in that.

As such, we were looking to rent out the house until such a time the market and world as a whole had resumed normality. Consent to let, in theory, appears to be an option however I do have some questions about the viability of that:

1. Does consent to let influence affordability in the eyes of other lenders when applying for a mortgage to acquire the new property (we have the deposit in place already)? For instance, does the assumption of rental income effectively offset the cost of my existing monthly mortgage repayment, or not?
2. I've read in a couple of articles that lenders typically want to see an anticipated monthly rental value of 125% mortgage repayment? Our mortgage is currently with HSBC.
3. Are the reasons I've described for wanting to request consent to let likely to be valid? I appreciate that may be a tough one to answer as these are somewhat unique times we are in at this moment.

Any advice appreciated.

Thanks!

Thrugelmir

Lenders may well require justification for granting Consent to Let to borrowers. Not a back door route to obtaining a BTL. 
Only the interest element of your monthly mortgage repayment is offsetable against the rental income. In addition allowable costs can be deducted. The remainder will be subject to income tax. 
Merely an observation. Renting a property is not an ATM. There's the very real risk of losing money. 

amnblog

1. Does consent to let influence affordability in the eyes of other lenders when applying for a mortgage to acquire the new property (we have the deposit in place already)? For instance, does the assumption of rental income effectively offset the cost of my existing monthly mortgage repayment, or not?

DEPENDS ON THE LENDER FOR THE PURCHASE , BUT IN MOST CASES YES

1. I've read in a couple of articles that lenders typically want to see an anticipated monthly rental value of 125% mortgage repayment? Our mortgage is currently with HSBC.
   

NOT THE CASE

1. Are the reasons I've described for wanting to request consent to let likely to be valid? I appreciate that may be a tough one to answer as these are somewhat unique times we are in at this moment.

THE LENDER PROVIDING CONSENT TO LET WOULD EXPECT IT TO BE A SHORT TERM, NOT PERMANENT ARRANGEMENT

make sure you also allow for the extra 3% stamp duty that will be payable on your purchase

gj373

Letting property is not something to be entered in to lightly. If you have a choice make sure that you really really want to become a landlord. Do you really want to inject yourself in to someone else's life? Are you prepared for the potential downside (not paying rent, trashing the house etc)? Could you cover the mortgage if rent is not paid? One you have a tenant the property becomes their home - not yours. There are lots of ways to lose a lot of money being a landlord. Just think very carefully before you go down this route.