Consent to let

cuffed

Hi,
My wife and I have 7 months (31st December) left on our correct fixed rate mortgage.
We have accepted teaching roles in Dubai starting in August.
We want to rent out our property whilst we are out there but we are having issues with the mortgage. 
We want to have consent to let, but we also want to get a new mortgage before the fixed rate runs out and we're charged a huge amount of interest come December.
I know that there are 6 months minimum on a new mortgage to get consent, which is fine. But we will be living in Dubai by then, will we still be able to get the consent to let?

saajan_12

cuffed said:

Hi,
My wife and I have 7 months (31st December) left on our correct fixed rate mortgage.
We have accepted teaching roles in Dubai starting in August.
We want to rent out our property whilst we are out there but we are having issues with the mortgage. 
We want to have consent to let, but we also want to get a new mortgage before the fixed rate runs out and we're charged a huge amount of interest come December.
I know that there are 6 months minimum on a new mortgage to get consent, which is fine. But we will be living in Dubai by then, will we still be able to get the consent to let?

For this mortgage, you should be able to get the CTL for a period (often 12 months, ie 7 months at the fixed rate then 5 months on the SVR if you haven't remortgaged). However that wouldn't apply to any new new mortgage - if you apply for a new mortgage with the expectation of living abroad from the outset, then the lender would be unlikely to offer you a residential product.. more likely you'd need a BTL mortgage.

That also comes with some additional criteria, eg do you have > 25% equity, and would the rental yield cover 125% of the mortgage payments (at BTL rates which are often higher)? 

Bigger picture, how long do you expect to be in Dubai? Mgiht be better to sell up and then re-buy if / when you return. The money can still be invested in other investments, which don't need as much repairs / dealing with tenants / etc. Otherwise between the BTL interest rates and management costs, you could erode your profits anyway. 

kingstreet

cuffed said:

Hi,
My wife and I have 7 months (31st December) left on our correct fixed rate mortgage.
We have accepted teaching roles in Dubai starting in August.
We want to rent out our property whilst we are out there but we are having issues with the mortgage. 
We want to have consent to let, but we also want to get a new mortgage before the fixed rate runs out and we're charged a huge amount of interest come December.
I know that there are 6 months minimum on a new mortgage to get consent, which is fine. But we will be living in Dubai by then, will we still be able to get the consent to let?

This is all going to hinge on which lender we are talking about. Every one takes a different approach.

propertyrental

Post 2: Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new tenant protection (2015) plus the Homes (Fitness for Human Habitation) Act 2018

Post 3: Deposits: Payment, Protection and Return.

Post 4: Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

Post 5: Rent increases: when & how can rent be increased?

Post 6: Repossession: what if a LL's mortgage lender repossesses the property?

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

Post 9: Letting agents: how should a landlord select or sack?

An Assured Shorthold Tenancy (AST) can exist in 3 forms:

1) Fixed Term Tenancy. This has a start date, and either a 'Term' (eg 6 months, 12 months), or a specified end date. The Term can be any length from a few days to 7 years, although

i) a landlord cannot obtain possession via the courts in the first 6 months, meaning LLs rarely agree to offer Terms of less than 6 months, and

ii) a tenancy with a Term over 3 years must be Executed as a Deed.

2) Statutory Periodic Tenancy. This is created by statute (law) automatically when the fixed term ends, if the tenant does not leave, and if no other agreement exists (eg 1 above or 3ii below). 'Periodic' means it continues on a 'rolling' basis (usually monthly, but sometimes weekly or quarterly).

3) Contractual Periodic Tenancy. This can be created either:

i) from the start (ie the initial contract specifies a 'rolling' tenancy - there is no fixed term), or

ii) at the end of the fixed term, if that is what the original contract specified would happen when the fixed term ended.

_Penny_Dreadful

cuffed said:

Hi,
My wife and I have 7 months (31st December) left on our correct fixed rate mortgage.
We have accepted teaching roles in Dubai starting in August.
We want to rent out our property whilst we are out there but we are having issues with the mortgage. 
We want to have consent to let, but we also want to get a new mortgage before the fixed rate runs out and we're charged a huge amount of interest come December.
I know that there are 6 months minimum on a new mortgage to get consent, which is fine. But we will be living in Dubai by then, will we still be able to get the consent to let?

As @kingstreet is a mortgage broker I expect (s)he has more insight into what's possible with mortgages than I do but if you are no longer resident in the UK as of August 2023 you will find it nigh on impossible to apply for a residential mortgage in Q4 2023.  If you have already applied for consent to let with your currently lender then you most likely won't be able to take a retention deal either in Q4 2023.  You could be left trying to find an overseas landlord BTL mortgage instead and I speak from recent personal experience that is very challenging at the moment and I have friends living overseas with BTL in the UK who are also finding it very difficult to find lenders.

As someone who has managed lets from overseas, although granted even further away than the UAE, you will need to keep on top of the letting agent more so, in my opinion, than the tenants when you manage the let yourself.  With most of the high street name letting agents (most of them are franchises) you will initially deal with the acceptable face of the agency who sounds like they know what they're talking about until you sign on the dotted line and then your account will be passed to some inexperienced/eejit junior.  Choose a letting agent whose own name is above the door.

cuffed

saajan_12 said:

cuffed said:

Hi,
My wife and I have 7 months (31st December) left on our correct fixed rate mortgage.
We have accepted teaching roles in Dubai starting in August.
We want to rent out our property whilst we are out there but we are having issues with the mortgage. 
We want to have consent to let, but we also want to get a new mortgage before the fixed rate runs out and we're charged a huge amount of interest come December.
I know that there are 6 months minimum on a new mortgage to get consent, which is fine. But we will be living in Dubai by then, will we still be able to get the consent to let?

For this mortgage, you should be able to get the CTL for a period (often 12 months, ie 7 months at the fixed rate then 5 months on the SVR if you haven't remortgaged). However that wouldn't apply to any new new mortgage - if you apply for a new mortgage with the expectation of living abroad from the outset, then the lender would be unlikely to offer you a residential product.. more likely you'd need a BTL mortgage.

That also comes with some additional criteria, eg do you have > 25% equity, and would the rental yield cover 125% of the mortgage payments (at BTL rates which are often higher)? 

Bigger picture, how long do you expect to be in Dubai? Mgiht be better to sell up and then re-buy if / when you return. The money can still be invested in other investments, which don't need as much repairs / dealing with tenants / etc. Otherwise between the BTL interest rates and management costs, you could erode your profits anyway. 

We currently have £186,000 left on the mortgage and the property is worth £280,000.
We plan to love in Dubai for a minimum of 2 years.
Are there issues with getting a BTL when you know you will move abroad?

cuffed

kingstreet said:

cuffed said:

Hi,
My wife and I have 7 months (31st December) left on our correct fixed rate mortgage.
We have accepted teaching roles in Dubai starting in August.
We want to rent out our property whilst we are out there but we are having issues with the mortgage. 
We want to have consent to let, but we also want to get a new mortgage before the fixed rate runs out and we're charged a huge amount of interest come December.
I know that there are 6 months minimum on a new mortgage to get consent, which is fine. But we will be living in Dubai by then, will we still be able to get the consent to let?

This is all going to hinge on which lender we are talking about. Every one takes a different approach.

Are there any issues with getting a BTL mortgage before we move to Dubai or would most lenders be willing to give it out?