consent to lease

crnvg

Hi everyone;

Hope someone can help as I am losing my sleep over this

I took a resident mortgage from Halifax in 2006 and the rate expires on 31st August, so I will need a new rate from them.

Also I am moving abroad in August and want to rent my flat. If I get a resident deal and then 2 weeks later, can I request a consent lease or do I need to tell them at the same time when I request a new rate?

I have a great credit score, never gone overdraft, never missed any repayments for the last 2 years and also have been banking with halifax for a long time, they keep increasing my credit card limit etc. Considering all the facts, IS THERE ANYWAY THAT THEY CAN REFUSE TO GIVE ME CONSENT TO LEASE?

I asked few people and they all say, they have never heard such a thing, ANY ADVICE?????

Many thanks

itsgototstop

Hi,

I am in exactly the same position, been with halifax for years, v good credit score etc

I rang them to ask about consent to lease, and they said

a) you have to go into a branch to speak to someone, the old way of filling in a form and paying a £100 has finished

b) they assess on how much of the interest element of your mortgage is covered by the rent, I think they wanted 130%, but someone may know better

c) you pay £100 fee if they agree but they told me they also put you on a btl % rate ( i;,m on a fixed for another 3 years) but no redemption policy if they move you

I got the impression that if interest was covered say 1.3 a month no problem

alternatively you get landlord insurance and don't tell them, but personally I'm a worrier and couldn't do that though many do according to my local EA

owitemisermusa

Well, yes they can refuse. I am not 100% sure about the Halifax, but you may have to pay a fee and/or change rate or mortgage product. IOW, you should prepare for the worst case scenario ie BTL mortgage with associated fees/charges.

Someone who has first hand knowledge of the Halifax might come along and shed more light.

Also consider other lenders - if you are sure you're very 'mortgageable', it shouldn't be too hard. Still a few good deals out there.

HTH.

OMM

EDIT: Someone's beaten me to it! I love MSE (most times).

crnvg

I know, I am a worrier too, even my estate agent told me not to tell them but I would go crazy if I dont.

My other problem is, because I am moving abroad, I am not working at the moment, so even I have a good credit score, I dont think I can go to another lender without an employment.

itsgototstop

Hi,

Do you have any idea of rental per month versus mortgage interest?

You could always extend mortgage term if its not high enough?

itsgototstop

sorry I'm being a bit thick, no extending mortgage won't reduce interest part

crnvg

My payments will be with the current rates something like £1100 max and the rental value is currently £1400-£1500, so it really covers the payments.

Would the bank just ask the rental value or do they send a valuation person?

itsgototstop

Hi,

is the 1,000 the interest element? If so you are fine, I needed 2 EA valuations of the rental per month I think, they don't send anyone round but I think they have some database so know what the going rate would be

if interest is 1,100 and rent say 1500, that would satisfy them

crnvg

Hope so

What happened with yr situation? Are you still waiting for their reply?

itsgototstop

Hi,

Just posted a reply and lost it..

I'm staying put now for a while, was moving in with ex but he had it turned out 70k of cc debts he was running away from so that and other things made me scared

i'm not far from you, ham and fulham, and right now its stupid to sell unless you have to, so just overpaying mortgage and one day if i want to move will rent mine out

rental values central london (zone 2)is still ok so always an option but I love my flat and couldn't rent cheaper than my repayment mortgage!!

crnvg

I know, I was really planning on selling my flat but in this market, it really is stupid. Hopefully they wont give me any trouble with the renting, because if they dont let me my only option would be to sell it.
I really wish I didnt worry that much, just like you, all the agents telling me not to tell them anything.
It is very stressful, they dont give you any answers unless you fill that form, so you wont know anything until the last minute.
Very unfair