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Consent to lease

Last post Thu, May 28 2009, 10:26 AM by jimjam101. 7 replies.
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  •  Thu, May 28 2009, 10:26 AM

    Re: Consent to lease

    No. Halifax has told me to go on a 'consent to lease' product that they offer. It is fixed at 5.09% for three years. I believe RBoS do a very good fixed rate at the moment if you're not tied into a current deal. I called them the other day when Halifax sent paperwork showing that I was incurring early repayment charges (apparently this is not the case and was in error). They told me that I could transfer to them and get a residential mortagage and apply for consent to lease after six months.

    I agree that Halifax seem to be takinmg advantage of the current situation!

    • Post Points: 5
  •  Thu, May 28 2009, 2:05 AM

    Re: Consent to lease

    Sounds like Halifax are cashing in on people unable to sell their houses and wishing to rent out short term. Disgraceful...
    • Post Points: 5
  •  Wed, May 27 2009, 7:52 PM

    Re: Consent to lease

    I am going to be in a similar situation soon as need to rent out my property as unable to sell. However the Halifax have told me that I will have to go onto a buy to let rate which is over 6%! They didn't mention an admin fee but I am sure there is one of those as well! I am currently on a svr rate as my fixed rate came to an end in december. Have you been told that you will have to go onto a new buy to let rate too?
    • Post Points: 35
  •  Tue, May 26 2009, 2:24 PM

    Re: Consent to lease

    Thanks for the replies everyone. The £999 charge is listed as an application fee in the paperwork that they've sent me to sign... so yes, it does seem extortionate compared to £75!

    However, with regards to the early repayment charges... after calling Halifax to say that I may as well look around at what other banks have to offer if they're going to take early repayment charges they have now said that the early repayment charges included in the illustration seem to be an error. Although... I've been waiting for a good few hours for their call back to confirm that this is definitely the case!

    • Post Points: 5
  •  Tue, May 26 2009, 1:29 PM

    Re: Consent to lease

    Hi there, did Halifax say exactly what the charge is for? It sounds like they are effectively charging you the "application fee" as though you were moving products, which seems a bit unfair. My experience of the same situation, albeit a few years ago now: I had a NatWest fixed rate mortgage on my main residence. I was forced to move jobs into a new area, and could not sell the house, so let it out. I contacted NatWest who charged a nominal fee (in the region of £75 I think), mainly to cover the cost of reviewing my tenancy agreement. There was no "product fee", or time limit specified. They did also insist on checking the tenancy agreement when a new one was signed, which seemed reasonable to me.

    Another question springs to mind: is this fee listed in the product documentation that you received with the mortgage offer?

    • Post Points: 20
  •  Tue, May 26 2009, 12:38 PM

    Re: Consent to lease

    Hi - what an absolutely disgraceful situation!!! At least Dick Turpin wore a mask, as they say!

    I'm not sure this will help, but i'm with the Nationwide and i asked for consent to lease just over 12 months ago , by phone. They sent out a declaration for me to sign and return, which i did. They're allowing me to rent out the house for a period of 2 years, in which time if i wish to continue then i'll have to reapply. A rep at a branch said permission would probably be likely providing the terms still apply. Worthy of note perhaps is the fact that Nationwide don't do BTL mortgages. Perhaps if they did, then i'd have to transfer to a different rate, although i've stayed on the rate i was on at the time which is a Tracker! This will cease however in September, when it reverts to the SVR, but fortunately Nationwideare consistently one of the cheapest (and best IMO) lenders, where SVRs are concerned.

    Obviously an alternative would be not to inform them at all, although you'd be in breach of contract. In fairness the chances of them finding out are remote, although if they did, you could effectively lose the house and see your credit rating decimated...

    • Post Points: 5
  •  Tue, May 26 2009, 12:01 PM

    Re: Consent to lease

    Hi there,

    I'm in exactly the same situation... same current fixed rate too! I thought that it was a bit heeky of Halifax too. However, I was told that there would be no early repayment charges to transfer to a consent to lease product with Halifax.... Received the paperwork this morning and they've snuck it into the calculations! Meaning that it will cost me over £3000 to get the consent to lease!

    I'd also appreciate any info as to how to get around this!

    • Post Points: 20
  •  Thu, Apr 30 2009, 2:44 PM

    Consent to lease

    I own a residential property which is the subject of a Halifax mortgage. I visited my local branch yesterday because I am leaving the area to live with my partner. I do not wish to sell my home in this climate and therefore decided to ask for consent to rent it out. I have now been told that to transfer the 'product' to a consent to lease I will have to pay a product fee of £999.00!! How can this be right when there is no re-mortgage, no additional borrowing? I am simply staying with the Halifax and would be quite happy to pay an increased APR because of the non-residential aspect. I am currently on a fixed rate of 5.9%. Has anyone else come across this problem? If so is there a legitimate way around it? I feel aggrieved to spend just short of £1,000.00 for paperwork to be shuffled. I work in the property and regularly deal with mortgages so I have an idea of what would be involved in this kind of transaction.
    • Post Points: 50