Multiple periods of consent to let and gaps between

PurpleZoombini

I'm currently living and working in Australia. What was my primary residence in the UK has a residential mortgage and is currently let out with indefinite consent to let from the lender renewed yearly. I'm doing some planning on coming back, I'd be living in the home again as my primary residence after the tenants move out.

I'm considering the possibility that I might not be able to find work as easily in the UK or in time to cover bills if my savings run out. In this case I may have to return to Australia and let out my home again. I would want to consent to let again since I'd still plan on coming back so don't want to switch to a BtL mortgage. 

Question: Is there a limit on how many periods you can have consent to let during the mortgage term? Is anyone aware of a required gap between these periods, 12 months etc?   

Edit: Current mortgage is with Natwest.

theartfullodger

Why would tenants move out?  How are you planning to evict them?  Which country (NI, Wales...)? as the laws differ..... Lenders rules amazingly differ between lenders (and over time)

YOUR lender will have THEIR rules about periods.. Our opinions are but guesses.

Been declaring ALL rental income to HMRC?  They'll be CGT to pay eventually.

Best wishes to all 

user1977

PurpleZoombini said:

currently let out with indefinite consent to let from the lender renewed yearly.

In what way is it indefinite if it also only lasts a year?

PurpleZoombini

theartfullodger said:

Why would tenants move out?  How are you planning to evict them?  Which country (NI, Wales...)? as the laws differ..... Lenders rules amazingly differ between lenders (and over time)

YOUR lender will have THEIR rules about periods.. Our opinions are but guesses.

Been declaring ALL rental income to HMRC?  They'll be CGT to pay eventually.

Best wishes to all 

They would move out because I asked them to via the correct legal process in England and with the required notice peroid as a minimum but probably around 6 months and with flexability if needed. Before they decided to rent I was completely transparant with my circumstances and timescale. They said that worked for them since they were only looking for a place for a few years anyway.

Also not a tax dodger so of course I've declared all rental income to HMRC. I also pay tax on my overseas rental income here in Australia. No CGT as I have no plans to sell my home any time soon, the question was about me going back to live in it. 

I'm not sure why you felt the need to include comments that have nothing to do with the topic at hand. I was asking if anyone has knowledge or experience of this issue. I understand it's a little specific but didn't think it impossible that someone else may have gone through or come across something similar. 

PurpleZoombini

user1977 said:

PurpleZoombini said:

currently let out with indefinite consent to let from the lender renewed yearly.

In what way is it indefinite if it also only lasts a year?

By that I meant that Natwest said they were happy for the consent to let to last for the rest of the mortgage term if needed. As long as I keep paying the annual £120 fee either direct or added to mortgage it will just keep going. If I stop paying the fee then yes I assume they would cancel it. 

user1977

PurpleZoombini said:

user1977 said:

PurpleZoombini said:

currently let out with indefinite consent to let from the lender renewed yearly.

In what way is it indefinite if it also only lasts a year?

By that I meant that Natwest said they were happy for the consent to let to last for the rest of the mortgage term if needed. As long as I keep paying the annual £120 fee either direct or added to mortgage it will just keep going. If I stop paying the fee then yes I assume they would cancel it. 

In which case I can't see why they'd be bothered about it being interrupted by you moving in. But also, you (probably) don't have any contractual right to demand it later on - they could change their policy whenever they like.

PurpleZoombini

user1977 said:

In which case I can't see why they'd be bothered about it being interrupted by you moving in. But also, you (probably) don't have any contractual right to demand it later on - they could change their policy whenever they like.

Yes I don't assume that policies won't change at any given time to something not in my favour. If they insist I could switch to a buy to let mortgage. I'd just have to pay all the fees both to take out a costly expat mortgage and the ERC etc on switching it back in a few years when I try again. Hopefully this will be a non issue and I can find work.  

theartfullodger

PurpleZoombini said:

theartfullodger said:

Why would tenants move out?  How are you planning to evict them?  Which country (NI, Wales...)? as the laws differ..... Lenders rules amazingly differ between lenders (and over time)

YOUR lender will have THEIR rules about periods.. Our opinions are but guesses.

Been declaring ALL rental income to HMRC?  They'll be CGT to pay eventually.

Best wishes to all 

They would move out because I asked them to via the correct legal process in England and with the required notice peroid as a minimum but probably around 6 months and with flexability if needed. Before they decided to rent I was completely transparant with my circumstances and timescale. They said that worked for them since they were only looking for a place for a few years anyway.

Also not a tax dodger so of course I've declared all rental income to HMRC. I also pay tax on my overseas rental income here in Australia. No CGT as I have no plans to sell my home any time soon, the question was about me going back to live in it. 
...;

Thank you for your kind words.  I was simply judging you from my own experiences. Didn't do tax return for 5 years, had Sherriff officers banging on door demanding immediate funds.  Naturally all sorted since but I don't recommend that approach. Plus my getting paperwork not perfect in my first tenancy agreement (v easily done). Oh my stupidity, oh the hubris!

You'll realise tenants don't need to leave after your notices and the way things are going in England may be v v difficult to force eviction through court with eg abolition of section 21 - see
https://www.nrla.org.uk/resources/renters-rights-bill-hub

(? Member of NRLA?? If not suggest joining...)

Had you served ground 2 notice prior to tenancy start so you have eviction court ground for having lived there?? see
https://www.legislation.gov.uk/ukpga/1988/50/schedule/2

Best regards & good luck!

RAS

You still haven't told us in which country the house is, housing is a devolved matters and the laws are very different?

You'd be wise to commence well before you return to GB and assume it will take 6-18 months to remove the tenants. 

You need enough savings to pay for eviction and you'd be wise to get an eviction specialist to check your current documentation as failure to comply could prevent you obtaining possession or face fines. Even if you've been using an agent, the legal responsibility lies with you.

On the other hand the tenants might find a new home before their tenancy ends and it would be sensible to agree an early termination with no penalties expect damage. And to pay the mortgage until you can return.

bobster2

PurpleZoombini said:

theartfullodger said:

Why would tenants move out?  How are you planning to evict them?  Which country (NI, Wales...)? as the laws differ..... Lenders rules amazingly differ between lenders (and over time)

YOUR lender will have THEIR rules about periods.. Our opinions are but guesses.

Been declaring ALL rental income to HMRC?  They'll be CGT to pay eventually.

Best wishes to all 

They would move out because I asked them to via the correct legal process in England and with the required notice peroid as a minimum but probably around 6 months and with flexability if needed. Before they decided to rent I was completely transparant with my circumstances and timescale. They said that worked for them since they were only looking for a place for a few years anyway.

Assuming they now have a rolling periodic tenancy - if you want to ensure that the property is vacant in 6 months time - under Section 21 you would likely be better off giving the standard minimum period of notice (2 months).

This is because you would only be able to start court proceedings to evict them if they have not left by the date you gave. So if you give 6 months notice - and they don't budge - you could be looking at another 4-6 months before it's vacant (so 10-12 months in total).

silvercar

PurpleZoombini said:

user1977 said:

PurpleZoombini said:

currently let out with indefinite consent to let from the lender renewed yearly.

In what way is it indefinite if it also only lasts a year?

By that I meant that Natwest said they were happy for the consent to let to last for the rest of the mortgage term if needed. As long as I keep paying the annual £120 fee either direct or added to mortgage it will just keep going. If I stop paying the fee then yes I assume they would cancel it. 

In that case, keep paying the fee. For £120 a year you have peace of mind that you can let it out. Remember consent to let gives you permission to rent it out on your current mortgage, it doesn't force you to do so in a way that having a BTL mortgage would.