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Original poster

consent to lease help needed!

13 replies

dinofly · 02/01/2015 11:07

We currently have a consent to lease on our first house which is up next year. Due to circumstances, we will need to rent this out for a bit longer, timeframe currently unknown. Can anyone tell me if it is likely we will be allowed to CTL when the first term is up? Or is it possible that they will refuse this? How many CTL terms have other MNetter had in the past?

I'm worried Confused

OP posts:
Original poster
dinofly · 02/01/2015 20:13

Anyone?

OP posts:
Rockchick1984 · 02/01/2015 20:34

Do you have any equity in the property? The most likely situation if so is that you will need to transfer onto a buy to let mortgage.

TarkaTheOtter · 02/01/2015 20:37

We are in a similar scenario I think. Do you have an early redemption penalty if they say no and you have to remortgage. Our is £5k but our fixed rate is pretty high so we might be able to make some of that back.

Original poster
dinofly · 02/01/2015 22:50

We've got equity, fortunately we bought at a good time and overpaid for a few years (before we were skint!). I don't particularly want to go btl as we are likely to move back into the property in the future, although probs not for a few years. I don't want to have to change the mortgage twice and pay fees twice! tarka, we would need to pay 2% if we remortgage. I asked about btl and our lender don't offer a transfer so we would need to go with another. Does anyone know how the lending criteria differs for a btl to a residential?

OP posts:
EssexMummy123 · 03/01/2015 00:13

I've had CTL twice, BTL I think you need at least 25% equity

firstposts · 03/01/2015 00:17

I've got one due to be a forces family. The mortgage lender actually complained when we called to renew! Said its better that we didn't ask and they didn't say Shock I'm pretty sure a lot of houses are let without mortgage companies being informed. Not advice, just an observation.

Living · 03/01/2015 03:40

I've had a rolling consent to lease for the last eight years! I forgot to renew one year and they just did it automatically.

It will entirely depend on your mortgage lender.

Kakaka · 03/01/2015 05:10

We have had CTL for 6 years. We initially got it for 1 year, extended it once and occasionally I send them a new lease. We have a lifetime tracker at a very good interest rate so I try not to bring it to their attention.... They have never contacted us about the CTL.

I hope no one will come along and tell me this is a huge problem!

Which bank are you with OP?

WhatWouldJoanDo · 03/01/2015 05:58

I've had mine for 11 years. I pay them 100 quid every year for the privilege. Never thought what I would do if they refused. I lived there for 8 years before moving away.

Original poster
dinofly · 03/01/2015 08:16

Oh good,that's reassuring! I am with the Halifax, they gave me ctl until 2016. At the time, we thought that would be enough, but circumstances have changed and we could do with it for a few more years now. Halifax's website says that they give you 12 months and then you need to reapply at the end of this period. I did ask about transferring to a btl but they said I would need to move lenders. Surely it is in their best interests to keep giving me ctl as other wise I would move my mortgage and they wouldn't be able to make money from me?

OP posts:
UnMasterChef · 03/01/2015 19:11

The problem is Halifax may well not want your business and may refuse, there is no guarantee they will let you keep it. After MMR many things have changed and you will need to consider you may need a BTL mortgage, for that generally you need 25% equity and rent should cover 125% of mortgage payments

WhatWouldJoanDo · 08/01/2015 20:38

Yes that might be why mine works as I bought so long ago that the loan to value ratio is great. That said, it is an interes only mortgage so I haven't actually paid down the loan at all yet. Technically.

WhatWouldJoanDo · 08/01/2015 20:39

Sorry I'm with Santander

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