Multiple periods of consent to let and gaps between

PurpleZoombini

theartfullodger said:

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!

I'm an overthinker who always wants to do everything by the book so that would have never been the case with me fortunately. I know it happens but truly don't understand people not declaring income. I always figure it's more than likely someone, somewhere wants a piece of your money so better just paying up. 

I understand they might just decide to stay anyway and might just trash the place as well. I know evictions can get messy. That's the risk of letting out your property so my cost to bear. I trust my agent though, he's always been good at finding the right people before. Luckily I can comfortably pay the mortgage for a good while if they're going nowhere and not paying. 

I am a member of NRLA. 

I don't remember that clause, is it still relevent with the new laws? 

PurpleZoombini

RAS said:

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.

The property is in England.

I do trust my agent but I understand ultimately it is my responsibility. I do believe everything is above board though. 

If the tenants want to move out before I want to move in then depending on how close I just wouldn't replace them and would just pay the mortgage in their absence. That would cost money but eliminate the problem of going down the eviction route so probably better in the long term.  

RAS

Since you don't seem to be aware of ground 1, you might want to file the information away for future use. 

In England at least, a LL who is intends returning to the property to live at a later date can serve a Ground 1 notice. As long as the rules are complied with, the tenant has no defence against prompt eviction. 

As a regular LL, you need to give at least 2 months notice and can only commence court action after that time.

If your tenant is hoping for Council support, court takes months, After which you'll need bailiffs, often deflected by further please to the court. Simply because Councils count anyone who leaves before the bailiffs kick them out as making themselves intentionally homeless which negates their right to Council support. 

It is the Government intention to forbid no fault evictions, as has already been done in Scotland.

Grumpy_chap

PurpleZoombini said:

No CGT as I have no plans to sell my home any time soon,

There will be CGT whenever you eventually sell the property (based on a proportion of time it has been your primary residence from the total time of ownership) unless you keep the ownership until your eventual demise.

PurpleZoombini said:

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?   

I think these are questions only Natwest will be able to answer - along with whether you can have CTL and return to live in the property for a period.  It is possible that front line staff at Natwest may also not know the answer.

PurpleZoombini

RAS said:

Since you don't seem to be aware of ground 1, you might want to file the information away for future use. 

In England at least, a LL who is intends returning to the property to live at a later date can serve a Ground 1 notice. As long as the rules are complied with, the tenant has no defence against prompt eviction. 

As a regular LL, you need to give at least 2 months notice and can only commence court action after that time.

If your tenant is hoping for Council support, court takes months, After which you'll need bailiffs, often deflected by further please to the court. Simply because Councils count anyone who leaves before the bailiffs kick them out as making themselves intentionally homeless which negates their right to Council support. 

It is the Government intention to forbid no fault evictions, as has already been done in Scotland.

I understood ground 1 just to mean that reposession of the property to live in was an acceptable reason to issue an eviction notice and therefore makes it not "no fault". 

These tenants were mortgage free and sold their house to rent for a few years before possibly looking at buying again. They are confirmed to have the proceeds of the house sale sitting in their account. I wouldn't have thought they would be seeking council support but you never know. 

RAS

Your current tenants might not but future tenants could do so.

kingstreet

NatWest is probably the best lender for CTL. You still have access to retention products while on CTL. Most other lenders don't offer that so you end up on SVR.

WIAWSNB

silvercar said:

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.

Isn't that a plan?

PurpleZoombini

kingstreet said:

NatWest is probably the best lender for CTL. You still have access to retention products while on CTL. Most other lenders don't offer that so you end up on SVR.

My broker had mentioned that natwest would let me renew my residential mortgage while under consent to let but to be honest I didn't believe it. I'm saving aggressively atm so that I can pay down the mortgage. So in the event of going to SVR I can still comfortably afford it and continue that route and not necessarily need to take out a BtL mortgage.