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Consent to Let-Clydesdale
Diana posted a topic in Mortgage AdviceDoes anyone has experience of asking Clydesdale for consent to let? Do they ask for extra % interest or proofs/documents on why do you want to let out your property? If anyone had applied and successfully/unsuccessfuly obtained consent to let with Clydesdale and can share a copy of the form( they do not have an online copy) and share their experience, I would be very very grateful!
Mortgage Advice - stuck in a consent to let nightmare!
Dean_101 posted a topic in Mortgage AdviceHi, I am currently stuck in a consent to let nightmare and I was hoping I could get some help or advice. Any help would be greatly appreciated. The issues I have span a long list, but I have summarized most of the issues. In 2007 I bought a 1 bedroom apartment (new build/off plan) in Sheffield City Center for £106k (100% mortgage), myself and my wife lived there until 2010. In 2010 we bought a 3 bedroom house together. Because I was in a fixed mortgage for the apartment, I couldn't move to a different lender. So after failed attempts to sell the apartment, I decided to rent out the apartment. But because my mortgage lender (Norwich and Peterborough) changed their products, there was not an option for a buy to let mortgage with them so it had to be a consent to let. The mortgage for the apartment was roughly £600 per month (residential mortgage and also when it moved to a CTL). So the apartment was rented out under a CTL. The general rental income in for the apartment was £500 - £550 per month. So there was a short fall of £100 - £50 per month. I also had to pay ground rent and service charges (£100 per month), along with landlords insurance and cover any damages (£50 per month). So a worst case scenario was £500 rent + £100 short fall + £100 service charge + £50 insurance. £750 outgoings per month, with £500 rent, leaves a short fall/lose per month of £250 (which was not ideal). When the fixed rate mortgage expired I attempted to move to a buy to let with a new lender. The Zoopla valuations and near by valuations (from estate agents) put the property at £100k+ (Zoopla showed £120k+). My mortgage at this time was at £95k so I did have 75% LTV. So I paid for a broker and a required valuation on the property, which came back as £85k, which was way lower than everyone's estimates. So I could not move lenders and had to pay the broker fees. I continued to rent out the apartment, and continued to make the monthly loses. In 2017 I decided to try and sell the apartment again. In June/July 2017 I got a buyer, for £95k (the apartment was on the market for £95k - £100k, £95k which was the lowest I could go). This was great, but 3 days before the apartment was handed over the buyers solicitor discovered that the building didn't have a completion certificate. This totally took me by surprise and was my understanding that this should have been sorted when the building was completed back in 2007. There were 5 issues that caused the completion certificate not to be issues, 2 involved fire safety. From this point (July 2017) on wards has been a battle to try and get these issues sorted by the builders the land owners and Sheffield's building control. I have spoken to (many) solicitors about this, but to take either my original solicitor or the builders to court would cost thousands. So I am currently waiting (on a waiting list) for the legal/financial Ombudsmen to look at this as my original solicitor from 2007 when I bought the apartment should have noted this and not gone ahead with the mortgage. When I found out about these issues, the apartment didn't have any tenants (in a void period). I finally managed to get the builders to look at these issues. During this whole time myself and my wife had to pay for some private health care, which ramped up to £20k. The original plan was to take out equity on our residential mortgage (we had £45k equity) to pay off this health care bill. We approached our bank/lender and I was told that releasing equity wasn't possible. The option available would be to buy a new property, and use any money made to pay off the health care debt (which was a bank loan). Then get a new mortgage for the newly purchased residential. We found a new residential property and had a mortgage in principle completed (with the plan to pay £20K off the loan). We went to the bank 3 months after the mortgage in principle was done. So we could check everything (before we sold our current residential). The mortgage on the new residential was declined. The basic outgoings (affordability check) caused an issue. Our residential mortgage was £370 per month, the loan was £260 per month, but because the apartment which was being rented out was classed as a consent to let, the rental income could not be considered. So that added an additional £600 to the outgoings. In total (as a base number) is £1230 per month. Our other option was to stay in our current residential house, and just attempt to take out £20k from the equity, which would then be added to the apartment/consent to let mortgage which would take the LTV down, so I could move it over to a new lender on an interest only mortgage. A new buy to let mortgage would mean that I could pay the apartment's mortgage and also the loan payments (the rental income from the apartment would cover our outgoings i.e. the loan and buy to let monthly payments). But this was declined. So the current situation I'm in is that I'm waiting for Sheffield Council building control to fix/check the issues regarding the completion certificate (the completion certificate still needs to be issued as 4 of the 5 issues have been done, the fire safety issues were the first to be rectified). I am stuck with my consent to let mortgage for my apartment because I cannot release any equity from my residential mortgage as the outgoings are too high (rent isn't taken into consideration with a consent to let) and I cannot sell the property because the completion certificate isn't in place. I have spoken to many estate agents in the area and 1 apartment in the same building apparently sold a while ago. The buyer bought that apartment with cash. But If I were to sell (once the certificate is issued), the value of the apartments have dropped below market value (around £85k) which is too low for me to cover as my mortgage is £88k. So if you have manged to read through all of this (which has been edited/cut down quite a lot), you can see it is a living nightmare. If there is any help of advice anyone can give, I would really appreciate it. Thanks.
lease Consent to let from freeholder
hs001jde posted a topic in General Advice on Renting Your PropertyGood morning hubbers, I'm looking for a quick bit of advice from someone who has good knowledge of leases and getting consent to let from a freeholder. From what I have read previously in forums it seems that if a lease holder wants to sub let they always need consent from the freeholder and have to pay some kind of admin fee and send documents such as the AST and tenant references to the freeholder (or agent working for the freeholder). My question is, is this always the case? The reason I ask is because I approached the managing agent of my freeholder and asked them about getting consent to let my leasehold property. At first they told me there would be a fee and they would require the documentation I mentioned above. I looked at my lease and found that there was no mention of having to pay any fee to gain consent to sub let and no mention of even having to get any type of consent. I went back to the same managing agent and queried this and they immediately said I was right and that I did not need any kind of written consent as it is written in to my lease. This has left me slightly confused. I've never heard of a lease not requiring these things to get consent to sub let. Has anyone else experienced this? Kind regards James
Santander Consent to Let
PaddyHorsington posted a topic in Mortgage AdviceHello, I'm currently living in my property, but would like to let and move out. What conditions are there in order to do that with Santander? Has anyone been through the Process? Thanks in advance
Consent to let - Santander
Az Bij posted a topic in Mortgage AdviceHi all, I have a residential mortgage with Santander on a property that I want to rent out. Does anyone have any recent experience on getting consent from them? It seems like they do not declare a fee structure or policy. Instead, they say that you have to fill out a form to request permission and then find out the charge or imposed product transfer. Thanks!
Hi all, wondering if you guys could help me out on something. Can I get another residential mortgage for me to live in while I already have one let out on consent to let basis? (currently in the middle of its AST) I want to do this because my current living situation is temporarily with a parent due to working all over the country, and I am not in a situation to have my property back any time soon. I know there is the option to switch the let out property over to BTL mortgage but would like to avoid this change if possible. Is any of the above fair game in the lenders world, or is my idea potentially damaging to my lending future? Thanks Jacob
Hi, I would like some advice regarding my consent to let property. Back in 2007 I bought my first property (bought for £106,000), it was a new build (off plan) one bedroom flat. In 2010 myself an my wife decided to buy a house together and due to not being able to sell the flat at a decent rate (valued at £85,000 - £97,000), decided to rent the flat out. The flat was changed from a 'residental mortage' to a 'consent to let mortgage' as The Norwich and Peterbough Building Society do not do 'buy to lets'. Since the crash of 2007 - 2008 I have expected the price to drop but gradually gain traction and early this year noticed that the Zoopla estimate for the flat was £127,000. Which gave me the 75% LTV I needed to get free of my 'consent to let'. I approached a mortgage broker and paid a fee of £350 for their services and based on the valuation, I would be able to go ahead with a new mortgage lender - great! The flat was valued at £80,000 and a second valuation of £82,500 was done. This is way lower than the £127,000 on Zoopla's site and also lower than similar properties in the area (the building next door had a flat which sold for £90,000). The property is in Sheffield City Center and land around the building is going to be developed, although this won't be finished for a few years. So I am still stuck with my 'consent to let' mortgage which is £608 per month, but the tenant's rent only comes to £525, plus there is a service change and ground rent and insurance I pay out for. So I am losing each month. The mortgage broker said I should wait it out and see what happens in 12 month (I have paid their fee and they are happy to help again), but if these valuations are correct (or the best I can get) it will be a long and expensive wait. Is there any advice, anyone could give about how to move to another mortgage lender to a 'buy to let' mortgage? Any help would be appreciated.