Need Help?
Need professional advice for your consent to let with Capital Home Loans? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Sample questions relating to Capital Home Loans consent to let
- My house had been tenanted for three years from 2009-2012 while employed in New York. I have a letter dated March 2010 from my building society granting consent to let. In the letter it clearly states that the consent to let is valid for "the remaining term of the mortgage". I have not remortgaged since the letter was sent. I now plan to move house and rent out my existing house. However, my financial advisor has suggested that the 2010 consent to let letter may not be acceptable to the new lender Capital Home Loans for the house I wish to purchase.Your view would be appreciated
- I may have the chance to go and work abroad in a couple of years. I am therefore potentially downsizing to a newbuild property in Wandsworth which I could rent out more easily when the time comes. I would aim to keep 50% equity in the new flat which would be my home for a while. My current mortgage co will only grant consent to let for 12 months. I anticipate renting it out longer term and not informing them could land me in a whole heap of trouble. Buy-to-let seems unnecessarily expensive given that I will be living there, maybe for 2-3 years initially. What type of mortgage do I ask for, and from whom? Do lenders such as Capital Home Loans provide consent to let for a longer period?
- I am may soon need to apply for consent to let from my current mortgage provider Capital Home Loans. A colleague of mine said that she was granted ‘consent to let’ confirmation from a different lender where conditions attached to the consent referred to an AST. Can you explain what this is?
- I am planning to let my apartment for a year from 30th July next year. Is there conventional wording for a letter I can use to write to Capital Home Loans to apply for consent to let.
- Is there a maximum period that Capital Home Loans is willing to issue Consent To Let for?
- Will Capital Home Loans choose to exercise a right to switch the rates on a residential mortgage where Consent to Let at any time, onto ‘rates equivalent to their Buy to Let range'? Is it possible to refinance on a consent to let with Capital Home Loans?
- Are you aware of any discretion in the accepted equity ration before switching from a current Capital Home Loans mortgage to a consent to let?
- I am interested in consent to let for my home mortgaged with Capital Home Loans. How do I move forward? Do I have to call Capital Home Loans and get them to agree?
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Caveats to be read in in addition to the above Capital Home Loans consent to let Questions and Answers
Tax and Legal
There may be various tax and legal (from restrictions on title, lease prohibitions to planning issues) implications when letting out your property. You should always seek the advice of a solicitor and accountant before letting out your property.
Insurance
One thing to remember when arranging a consent to let mortgage with Capital Home Loans is to switch your existing residential buildings insurance policy to a landlords buildings insurance policy. The insurance premium is marginally more expensive but if you don’t switch your insurance and you need to make a claim then you won’t be covered on your standard residential buildings insurance. As a minimum you should ensure that you are covered for any third party liability in respect of injuries to your tenant whilst at your property
Leasehold properties
If your property is leasehold, the provisions in the lease may prevent you from letting or require that you to have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Co-ownership
Omitting to advise your co-owner of your intention to let could result in them commencing legal proceedings against you. Be sure to record their consent in writing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Capital Home Loans