Help - Ridiculous Temporary Consent to Let rules

hev_2

agentvamp wrote: »

Thank you so much for your positive contribution Hev, thats so much more helpful and greatly appreciated.
Would you still not recommend moving even if my partner was offering to do the move without any help from me?!
I take your point re having the baby in with you for at least 6 months anyway and will consider staying here.
On the other hand I could drop the price in order to sell but what happens if you end up not being able to pay off all the mortgage with what you receive - does the remainder continue as a debt that you service?
thanks again

Right, this is a very female thing to say, and is very high on the silly old biddy meter, so ignore me if I am being dippy. Do you trust your partner to move you. I could barely move for sciatica when I ended up staggering around 8 and a half months pregnant trying to sort out what carpet to get of little ones room because that was the only thing I didn't dare get online (it arrived 8 days before DS!). OH promised to take me to the shops time and again 'later'. How much packing is there? Do you have somewhere to go? Can you find somewhere and buy it/rent it in the next three months?

In my experience forget the first month after the birth but then you can do loads in the second third and fourth month before they do much more than sleep, eat and dirty nappies (Get as many cuddles in at this stage as you can - if you can't cuddle your little one at this age when can you cuddle them?) It will be easier if you live in a bigger place, no doubt, and there may be complaints from neighbours, issues about getting washing dry, getting out of the house if there are a lot of stairs...

For houses there are a lot of people better at this than me, but my understanding is that if you have a mortgage at say £100k and you sell your property for £90k then you still owe the bank 10k and interest and charges and fees and anything else that they can add on.

Sorry can't be more helpful.

MarkyMarkD

No, you simply cannot sell the property for less than the mortgage value because the lender won't let you.

You can't just leave the £10k or whatever as an unsecured debt, off your own bat.

You need the lender's permission to sell for less than the debt value, and they'll want a very good reason why and a very credible plan for repaying the debt.

waggys

Excuse me if I'm being stupid, but why not just rent the flat out without asking Northern Rock for their permission? How would they know?

real1314

waggys wrote: »

Excuse me if I'm being stupid, but why not just rent the flat out without asking Northern Rock for their permission? How would they know?

Ok, first thing is that it would be unfair on the person you rented to as the tenancy agreement would not be valid. The buildings insurance would also be invalid, so if the tenants had an accident and it burned down, the OP would be in deep doo-do.

OP, the reason they want 75% LTV is to make it the same as BTL mortgages. Otherwise anyone could buy a place as their "home" at 95% and then change to letting after a month or so.
Best thing to do is stay where you are and make do. Babies do not get big very quickly - in fact it takes years for them to double in size.
Having a baby will change your life more than can possibly imagine, and all the issues about houses will not matter for a good while.

Good luck with the important things - your health and your child.

silvercar

waggys wrote: »

Excuse me if I'm being stupid, but why not just rent the flat out without asking Northern Rock for their permission? How would they know?

That is what I would do, if I had enough money set aside for problems with the let property (voids, maintenance etc) and,

If I had a reasonable deposit to put down on the new place so that I could access decent mortgage deals and have a margin incase I needed to remortgage or sell the new place.

Ok, first thing is that it would be unfair on the person you rented to as the tenancy agreement would not be valid.

Incorrect, it would be valid as a contract between tenant and landlord, it would not be acknowledged by the lender. Only unfair to the tenant if you failed to keep up with repayments.

The buildings insurance would also be invalid, so if the tenants had an accident and it burned down, the OP would be in deep doo-do.

Essential that the landlord takes out correct building insurance whether the lender is aware or not.

Otherwise anyone could buy a place as their "home" at 95% and then change to letting after a month or so.

As people have done in the recent past.

waggys

We have in the past let out a property without permission from our lender as we were not prepared to pay £50 for administration fees. We had no problem getting an assured shorthold tenancy agreement set up or landlords building insurance.

neverdespairgirl

hev wrote: »

You do not need all the stuff in mothercare. Pare it down to the bare essentials.

You can sleep in the same room as a baby, I did so for over a year. In fact, the latest recommendations are that you spend at least the first six months sleeping in the same room as your little one to help protect against cot death.

I agree with ALL of that. Babies don't need lots of stuff, despite all the rubbish Mothercare / John Lewis / designer baby brands will try to sell you. To start with, all you need is some clothes, a moses basket (or cot), sheets, towels, baby bath, baby sleeping bag or blankets, nappies, and wipes or cotton wool, a changing mat, and a pushchair. Nothing else! Oh - and a car seat, obviously, if you drive, but that will be in the car anyway.

You don't need a specially-sized and very expensive wardrobe / chest of drawers / changing stand with bowl attached / any of the other stuff.

iolande

Funny this. Me and my partner live in a one bed flat and we are thinking about babies and if we should move to somewhere bigger to be ready. Problem is the housing market isn't that good. Every older woman I have talked to about this (including my mum and the mortgage adviser at the bank) were surprised, and all to a woman said that they spent the first couple of years after their first child in a one-bed flat and couldn't understand why women of our age wanted somewhere bigger first.

It's made us rethink the situation. I guess the time to move would be when they get a bit older and start getting into everything (18 months old) and when you can leave them with granny (or someone) whilst you are sorting the move out.

Congratulations by the way - you must be so excited!

agentvamp

Yes indeed, I was only watching a tv prog the other day where it talked about our generation 'wanting it all' and not being willing to wait, so i do take your point.
However, I failed to mention the key driver to wanting a bigger place - above and beyond the baby - it's the fact that my OH's two young children (5 & 8) come and visit for 2 weekends each month and longer during school holidays, and they currently sleep in the living room on their 'funky air beds'. It gets awfully cramped and noisy!
Anyway yes, I am v excited about baby - but am a born worrier/planner so it feels like Northern Rock have pulled the rug from under my feet!

Something will work out I'm sure - thanks for all the advice... but to those that suggested bankruptcy I really don't want to do that.

As for being 'greedy' and borrowing beyond my means, that was a bit of an unfair comment - in this day and age, getting a 95% LTV mortgage is (or was) quite normal - and I still had to save up £15k for the deposit + fees which took me a few years. A part of me can't believe my rotten luck when all around me, all my friends (mostly helped by their parents giving them a big deposit) got onto the first step of the property ladder earlier, and watched their property rocket in value. The current credit crunch doesn't affect them now apart from to say their property values are remaining stagnant ...

agentvamp

waggys wrote: »

Excuse me if I'm being stupid, but why not just rent the flat out without asking Northern Rock for their permission? How would they know?

I worry they could find out somehow - they might telephone the landline and speak to the tenant...

It's just so annoying 'cause I have been an exemplary customer and have a strong credit rating.

They're just plain MEAN!!