Need Help?
Need professional advice for your consent to let with HSBC Bank plc? 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 HSBC consent to let
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Just wondered if HSBC exercise a right to increase interest rates on a non-commercial mortgage that has just been approved for Consent to Let at any time, onto ‘rates equivalent to their BTL products'?
- I have my garden flat in Islington on the market but despite a couple of viewings there is a lack of interest so far. As a fall back position I am considering leasing out the property if it doesn't sell. I dont anticipate a problem getting consent to let from the freeholder. My financial adviser says that in such a situation I may need to switch to a buy to let mortgage yet the chances are that I don't have enough equity needed. What's the worst that could happen if I if hypothetically I was to retain the existing HSBC mortgage and rent out the flat without telling them I was told that they can put a marker on you for mortgage fraud once find out. Is that right?
- I need to decide what to do ie let or sell. The property has a mortgage against it with HSBC (with fair amount of equity). We are planning to move out of Cambridge and if at all possible would like to to rent out our house with consent to let from HSBC and use the income from that to help get approval for a second mortgage for a house to live in. How can I fund a second mortgage without selling my old property and using the equity as a deposit for the new property. Is there anyway I can change my old mortgage to a buy to let mortgages or obtain consent to let and take on a second mortgage without having a deposit to put down.
- I have a garden flat in Croydon which I purchased six years ago and which I have since remortgaged with HSBC on a fixed rate which ends next June. If I want to rent out the property whilst I go travelling what do I need to do and is there a time limit? Are there any other financial repercussions when applying for consent to let?
- I have a HSBC mortgage currently and potentially wish to let it out temporarily with consent from HSBC for (two years). Just wanted to know is it something that is obtainable relatively quickly?
- We have a consent to let letter that I have attained from my management company. I presume I need to send this with a letter to HSBC with a view to being given consent to let from them. What address shall I mail it to?
- Do you know if HSBC would have an internal record as to whether consent to let was granted for a specific property?
- What are the changes that HSBC force me into a consent to let product whilst in a fixed rate product for 2 years?
Find out more about how flying freeholds can affect the marketability of a property.
Important warnings to consider in conjunction with the above HSBC consent to let Questions and Answers
Tax and Legal
There are numerous potential 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 HSBC 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 lease may prohibit you from letting or require that you to have a license to do so from the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could trigger the freeholder commencing forfeiture proceedings.
Co-ownership
Neglecting to inform your co-owner of your intention to let could result in them taking legal action against you. Be sure to record their consent in writing.
If you do not keep up the payments on your mortgage with HSBC your property may be repossessed