Consent to let Renting out house

[Beekeeper22]

Hiya I’m moving abroad for a few years and I’m going to be letting out my house, is there any issues with getting consent to let? I spoke to Nationwide and they said you can’t do it until 2 months before which I find slightly stressful because what if it’s refused?? I presume it’s a given that they will agree unless you’re behind on mortgage payments or something. They also said they add 1% to the interest rate. I will have to switch mortgage in 2025 does anyone know if you can get a normal mortgage and CSL again or do you have to switch to Buy to let?

a different rate though

You won't get a btl mortgage if rent doesn't cover mortgage plus some. So that might remove all your choices!
It's been a while since we did it. I can't remember the numbers. Sorry.

I was offered various rates & terms by my lender (Barclays) every time the mortgage rate was due to end, it was only if I didn't chose one of these that I went onto the SVR. This included the time that I was letting it out (with their permission) due to working abroad. In that case, no, I didn't have to convert to a BTL mortgage as I had consent to let the house out for 2 years

@FallingAutumnLeaf oh it def will cover the mortgage- mortgage is £1200 and I’ll get £1600-1800 I think. I’m just thinking of management fees, tax, insurance etc etc. I might make a profit of about £200 a month I think. I wonder if better to let it go to SVR for 18 months to be honest

You need to factor in tax, if you are a higher rate tax payer you need to pay 40% tax on rental income. Costs no longer include mortgage

When I was looking at the same,looking to relocate for work, but come back to the same house in a years time I was told I need to get a consent to let .. and I found later I had to stay away longer, they could renew the consent.

But the most important factor is that I was coming back to live in the house as a resident.

For that reason I didn't need to get a btl .

My mortgage is with Woolwich via barclays

Yes. And isn’t there a capital gains tax liability in some instances? We rented our London house out for 3 years while working abroad and recall when we sold we had some CGT liability - as well as yes having to pay tax on rental income.

I rented my flat out when I travelled abroad. My mortgage company at the time were happy as it wasn't a permanent thing. Then when I tried to get another mortgage for a house purchase with my husband they were happy for me to remain on my current deal and not switch to a buy to let.

@Prettypaisleyslippers yes, I’m thinking I can write off things I have done to get the property ready for renting etc, and the interest on the mortgage and the agent fee etc

@Elmeux did you end up on a high variable rate?

What are your contingency plans to cover your mortgage in the event of rent not being paid?

What are your contingency plans if on your return the tenants won't leave?

@BMW6 I guess I will have to go through legal proceedings to evict them? What other options would I have?

I think they mean can you manage without rent for 6 months to a year while eviction goes through?

@BarbedButterfly @BMW6 yes I’ll be able to manage

Or I believe landlord insurance will cover some element of these?

Have you done the sums?

If your mortgage is £1200 and the rental is £1600-1800 I'd imagine there is not much chance this will be cash flow positive after management fees, tax and other expenses, because things tend to go wrong and need fixing, that's just part and parcel of the game but people never seem to take this into account.

If that mortgage figure is an interest only BTL mortgage then I presume depending on tax it will be losing you money.

@usertaken I’ve calculated that I will break even based on 40% tax. The mortgage monthly cost is my current mortgage with consent to let added at 1%

@usertaken sorry that’s a normal mortgage with consent to let, repayment mortgage

If I make a small loss after repairs etc, so be it. I def want to rent it because I’m going for 3 years so will want to come back to it.

I have consent to let on a mortgaged property. It costs me £100 to renew it each year, and doesn't affect the interest rate.

You don't have to switch mortgage when your fixed term runs out. It might be best to let the existing mortgage carry on (your agreement will tell you what the interest will be once the fixed period ends) and continue with the same mortgage and consent to let until you're back in the country, then get a new mortgage if you want to when you're back?

@HappyAsASandboy yes I’m thinking that too, otherwise I’d have to pay an early repayment fee to get out of the new BTL mortgage

@Beekeeper22

Are you going to be paid from the UK or your new home?

We were paid from "new country company". Our UK earnings consisted purely of rental income - on a house owed by me and DH. We both had 12k of tax free allowance to use.
That might help your sums.

@FallingAutumnLeaf oh I didn’t think if that! Yes I am paid from the new country so won’t have any other income from the UK. This sounds like good news!