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minmoz
19-03-2009, 20:43 PM
All,

Long time viewer but first time poster - thanks for the help to date.

Buying a new house and renting out existing one as would take too long to sell (if at all). Dont need to release equity so hoping to retain existing Woolwich +0.29% above base rate mortgage and get permission to let.

Have received the permission to let forms and conditions on the back state that they will only agree to me letting if my long term plan is to move back into the house. This is not my intention - does anyone know if this would be enforced? What are my chances of them agreeing?

Otherwise I am in a good position. House valued at 90+k, outstanding 48k, mortgage £305 p.m & rent about £525 p.m.

What do you think?

Thanks

mind the gap
19-03-2009, 20:53 PM
All,

Long time viewer but first time poster - thanks for the help to date.

Buying a new house and renting out existing one as would take too long to sell (if at all). Dont need to release equity so hoping to retain existing Woolwich +0.29% above base rate mortgage and get permission to let.

Have received the permission to let forms and conditions on the back state that they will only agree to me letting if my long term plan is to move back into the house. This is not my intention - does anyone know if this would be enforced? What are my chances of them agreeing?

Otherwise I am in a good position. House valued at 90+k, outstanding 48k, mortgage £305 p.m & rent about £525 p.m.

What do you think?

Thanks

Do they specify how long-term?

minmoz
19-03-2009, 21:04 PM
The exact wording is 'It must be your intention to re-occupy the property on expiry of the tenancy'.

Could it be more aimed at not having the house sitting empty?

mind the gap
19-03-2009, 21:17 PM
The exact wording is 'It must be your intention to re-occupy the property on expiry of the tenancy'.

Could it be more aimed at not having the house sitting empty?

I would have thought so. 'On expiry of the tenancy' could be years in the future, couldn't it?

And the chances are you will re-occupy it for a few weeks after T moves out - eventually - before you sell it.

You never know, you may come to love being a landlord so much that you never want to stop! :rolleyes:

minmoz
19-03-2009, 21:22 PM
Thanks for that. Was wondering if I was going to have to concoct an elaborate story about why I was only moving out for a short time.

Has anyone had any experience of getting permission to let with the Woolwich?

Surely they would be desperate for any excuse to get me off the 0.29% above base rate deal I am on as they cant be making any money off me.

Poppy
19-03-2009, 21:24 PM
I'm guessing that they are allowing your mortgage rate to remain unchanged because they want to retain your business and they'd want to examine whether your fledgling letting business is viable (lending-wise) in their eyes. BTL mortgage rates tend to be higher, as you realise. If you don't intend to move back, they probably want to up your rate.

By all means return the form saying you intend to re-occupy. Near the end of the tenancy, contact them again and formalise things properly.