Consent to Let Criteria

PeanutsMum123

Hello.
My husband and I are hoping to retire to the Scottish Highlands in a few years' time. The plan is to find somewhere we like, buy it with a view to us moving up there eventually. In the meantime, we would be hoping to rent it out to keep the property ticking over. We wouldn't be renting it to make a profit or as an investment, just to keep the property lived in until we can move there. We would obtain landlord's insurance on the property and declare all income to HMRC. Would we have to get the property on a Buy to Let mortgage or Residential Mortgage with Consent to Let? We are looking to mortgage with RBS. If anyone has any advice, we would be most appreciative.

theartfullodger

Yes, unless you want to be at risk of property being repossessed.

And remember consent to let ends on a date, but tenant has right to remain and can only be forced out by court and Bailiffs.

As it happens house in Highlands just on market, mountain and sea loch views, selling due to age and ill health and 500+ miles each way away

Do you like midges?

davidmcn

If what you're initially proposing to do is let it out then the appropriate mortgage product is a BTL one. A standard residential mortgage would require you to move in.

Slithery

As you aren't planning on immediately making the property your main residence you 'll have to get a BtL mortgage, you won't pass the criteria for a residential mortgage.

PeanutsMum123

Thank you. How long would we have had to live in it for to then be able to request consent to let at some point in the future?

greatcrested

BTL mortgage as explained.

Plus remember that landlords in Scotland need to be licenced.

There are also numerous other legal requirements. I suggest you check Shelter Scotland's website before you go any further.

Or

https://www.mygov.scot/housing-local-services/landlords-letting/being-a-landlord/

PeanutsMum123

Thanks, it would be a reputable estate agency who would be dealing with the tenants/contracts etc.but I will look into that further.

Slithery

PeanutsMum123 said:

Thanks, it would be a reputable estate agency who would be dealing with the tenants/contracts etc.but I will look into that further.

Irrelevant. It's still you that remains legally liable whether you use an agent or not. Also remember that absolutely zero qualifications or training are needed to become a lettings agent.

PeanutsMum123

Sorry, so if we bought it purely as a second home and didn't rent it out, apart from the 4% tax in Scotland we would have to pay on purchase for a second home, could that be on a residential mortgage?

greatcrested

PeanutsMum123 said:

Sorry, so if we bought it purely as a second home and didn't rent it out, apart from the 4% tax in Scotland we would have to pay on purchase for a second home, could that be on a residential mortgage?

No. A standard residential mortgage is intended for occupation as your main residence. You would need a 2nd home mortgage. See

https://www.uswitch.com/mortgages/guides/second-home-mortgages-explained/

davidmcn

PeanutsMum123 said:

Sorry, so if we bought it purely as a second home and didn't rent it out, apart from the 4% tax in Scotland we would have to pay on purchase for a second home, could that be on a residential mortgage?

Like I said above:

davidmcn said:

A standard residential mortgage would require you to move in.

You can get mortgage products for holiday homes, though they're thinner on the ground and on different terms.