Jump to content
House Price Crash Forum
Sign in to follow this  
The Masked Tulip

Consent To Let

Recommended Posts

I wonder how common this is?

I was talking with an EA yesterday who told me that more sellers who cannot sell are now looking to rent out their home whilst buying the house they want.

I wonder how many are actually changing their mortgage from owner occupier to BTL and discovering, as the below poster did, that there are huge financial penalties. Or perhaps most are not telling the banks?

need to vent so i will apologise before hand!!!

our house is not selling so we have just spoken to our mortgage provider about 'consent to let'. From proviouse discussions on here - i expected a £100 (ish) fee and a letter but NO!

they would almost double our rate and add £250 - £300pm on to our mortgage!!!! we can't afford to rent it out now!!!

plus there is huge 'arrangement fee' of £599 or £1249 depending if we went for fixed or tracker!!

explained that we not applying for new mortgage we just want to rent and thought all we need was a letter and a fee for letter - they said no we need to apply for a rate chg as our current mortgage is owner/occupiers!!!

can they do this???????????????????????????

http://forums.moneysavingexpert.com/showthread.php?p=37113412&posted=1#post37113412

Share this post


Link to post
Share on other sites

What the sellers really mean is that they can't sell the old property for the price they want or need. Just lower the price.....

Yes this is the obvious solution to al these sellers who say they "can't sell".

Really it is not a case of not being able to sell at all, but more a case of sellers not lowering the price enough to match current market conditions.

Share this post


Link to post
Share on other sites

That chap went on to say...

"reduced it last week for the second time.

Original estimate was £157k - £165K. we put it up for £157K reduced it to £150K now at £140!!!!!

can't afford to go any lower

EA confirmed that the price is definitely not the prob - just hses not selling. "

...and houses aren't selling because of THE PRICE. dur.

Share this post


Link to post
Share on other sites

That chap went on to say...

"reduced it last week for the second time.

Original estimate was £157k - £165K. we put it up for £157K reduced it to £150K now at £140!!!!!

can't afford to go any lower

EA confirmed that the price is definitely not the prob - just hses not selling. "

...and houses aren't selling because of THE PRICE. dur.

What these people dont realise is that by not selling the original property they are leveraging the loss if prices go down (as they are going to at some point). They could end up with two properties in -ve equity.

Share this post


Link to post
Share on other sites

Doubling the rate and big fees appears to be a lot harsher than during the early 90s and that's saying something as apparently they were harsh then.

Perhaps it depends on the mortgage provider but from that (admittedly only one) example it sounds like they are more than determined to catalyse a housing crash now.

Edited by billybong

Share this post


Link to post
Share on other sites

What these people dont realise is that by not selling the original property they are leveraging the loss if prices go down (as they are going to at some point). They could end up with two properties in -ve equity.

...what they should do is BTL the house they can't sell ...move and rent ....the original house being self financing....no point exposing to another reducing asset financed with debt.... :rolleyes:

Share this post


Link to post
Share on other sites

on the same thread

'I've just reduced the asking price of my house to what I paid for it in 2004! If I still don't get any luck I'm renting it'

I sold my house for roughly what I paid for it in 2004/5 - it happens there is no magic wand to wave to ensure that houses will always make you money. Good luck with renting it out!

Share this post


Link to post
Share on other sites

...what they should do is BTL the house they can't sell ...move and rent ....the original house being self financing....

Its not self financing if they are making a capital loss due to falling prices.

Share this post


Link to post
Share on other sites

Its not self financing if they are making a capital loss due to falling prices.

And futhermore, having a BTL with -ve equity is playing russian roulette - 2 weeks of voids and the receivers will be called in to sell at auction unless you can cover the payments yourself.

Edited by goldbug9999

Share this post


Link to post
Share on other sites

Its not self financing if they are making a capital loss due to falling prices.

.....depends what view you are taking and whether it is short, medium or long term ....take the loss if you can in fact sell or project a view ....pay your money and take your chance ....there are no guarantees either way....but that's life.... :rolleyes:

Edited by South Lorne

Share this post


Link to post
Share on other sites

I wonder how common this is?

I was talking with an EA yesterday who told me that more sellers who cannot sell are now looking to rent out their home whilst buying the house they want.

I wonder how many are actually changing their mortgage from owner occupier to BTL and discovering, as the below poster did, that there are huge financial penalties. Or perhaps most are not telling the banks?

http://forums.moneysavingexpert.com/showthread.php?p=37113412&posted=1#post37113412

I think this argues against the notion that a mortgage holder 'owns' the house. The bank holds the deeds and can tell you what you can do with the house and issue monetary penalties if you disagree. I don't call that 'owning' a house.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.