Mortgage and Living abroad

FataVerde

Just received my mortgage offer for a 5-year fixed from Halifax. I noticed they have a "Chapter 17 - Living abroad" clause in the mortgage papers. Is this now common to most mortgages? I currently live in the UK, but I might need to work abroad either temporarily or for a longer period of over 5 years. What happens if this happens within the 5 years of the fixed mortgage? Will I have to pay the fees for early termination to remortgage with a specialised mortgage? Thanks!

[Deleted User]

if its temporary and you plan to return to the UK then you can apply for Consent to Let with Halifax.

FataVerde

Do they typically approve these applications? I tried to get more info out of the bank, but they say there is no regulation in place and they approve on a case by case basis. Do you happen to know what periods of letting they are likely to approve? The most likely scenario would be 6 to 12 months. Although very unlikely, I also wonder what my options would be if I do find a better job abroad and need to let long term. Would I then need a different mortgage?

[Deleted User]

in a lifetime ago before i became a broker I used to authorise the consent to let applications. Things may have changed but back then as general rule of thumb if you have 25% equity then you would get approved (as that was the buy to let criteria).  If you expected to move back within 36 months then it would be approved.  
My uncle just did one as he was moving to france for a few years to live there and they approved no issues.  He was around 60% ltv though.  
If its short term and its likely you arent abusing a residential mortgage when you actually wanted to rent it out full time anyway then the odds are more in your favour

https://apply.halifax-online.co.uk/personal/a/gforms?formId=F025&prodType=MM

FataVerde

That makes perfect sense! I have meanwhile found the form to apply on their page as well. It seems they don't allow letting under 6 months, something to do with the assured tenancy clause maybe.

dimbo61

Yes others may say you can offer a Tenancy for less than 6 months but you can't serve a S21 until a Tenant has lived in the property for 6 months.

MaryNB

dimbo61 said:

Yes others may say you can offer a Tenancy for less than 6 months but you can't serve a S21 until a Tenant has lived in the property for 6 months.

An S21 can be served after the first 4 months, it just can't expire during the first 6 months (or longer if the fixed term is longer).

FataVerde

MaryNB said:

dimbo61 said:

Yes others may say you can offer a Tenancy for less than 6 months but you can't serve a S21 until a Tenant has lived in the property for 6 months.

An S21 can be served after the first 4 months, it just can't expire during the first 6 months (or longer if the fixed term is longer).

Does this essentially mean that, with a tenancy of under 6 months, I might run into the problem of the tenant not wanting to move out after 4 months and I would not be able to do anything legally until 6 months pass?

MaryNB

FataVerde said:

MaryNB said:

dimbo61 said:

Yes others may say you can offer a Tenancy for less than 6 months but you can't serve a S21 until a Tenant has lived in the property for 6 months.

An S21 can be served after the first 4 months, it just can't expire during the first 6 months (or longer if the fixed term is longer).

Does this essentially mean that, with a tenancy of under 6 months, I might run into the problem of the tenant not wanting to move out after 4 months and I would not be able to do anything legally until 6 months pass?

Tenants have a right to have a minimum 6 month AST. Once that 6 months ends the tenancy automatically becomes a monthly rolling contract unless you issue a valid S21 at the 4 month mark which expires at the end of the tenancy, or the tenant leaves at the end of 6 months.

If the tenant refuses to leave at the end of the S21 notice period you then have to apply to the court for an eviction order. 

Thrugelmir

FataVerde said:

MaryNB said:

dimbo61 said:

Yes others may say you can offer a Tenancy for less than 6 months but you can't serve a S21 until a Tenant has lived in the property for 6 months.

An S21 can be served after the first 4 months, it just can't expire during the first 6 months (or longer if the fixed term is longer).

Does this essentially mean that, with a tenancy of under 6 months, I might run into the problem of the tenant not wanting to move out after 4 months and I would not be able to do anything legally until 6 months pass?

Tenant could be in situ for some months. 

marie_hc

sorry to hi jack we have our house in UK hubby is working abroad paid in countries currency I only travel a couple of times a year and stay a few months a time.   We are having difficulty getting a re mortgage because of his job and pay.                     

we are only looking for a residential re mortgage we have no intention of renting our house.  anyone out there you can help?

thanks 

may post in new topic but will wait and see what comes back