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  • FIRST POST
    paulhutch
    Do I get consent to let from lender to rent out my house?
    • #1
    • 25th Aug 10, 5:44 PM
    Do I get consent to let from lender to rent out my house? 25th Aug 10 at 5:44 PM
    Hi
    My wife and I have had a residential mortgage for 4 years with a perfect payment history. We are moving to Hong Kong for approx 2-3 years. Some very good friends of ours are going to rent our house. The agreed rent is considerably lower than the mortgage payments which is fine by us as we have somewhere to store our things and also have someone we can trust 100% in the house. The mortgage lender is Northern Rock. They say they, to get a consent to let,
    - must have 30% equity
    (we have no where near)
    -the incoming rent must be 120% of the mortgage payment

    We intend to set out a tennancy agreement, get gas safety certs and get land lords insurance. We are also extremely confident of NOT failing the mortgage payments.
    Do we really need to get consent to let from the lender?
    How could the lender find out?
    What would be the reprocusions for landlord and tennent?
    Advice please, many thanks.
Page 3
    • silvercar
    • By silvercar 28th Aug 10, 5:50 PM
    • 36,084 Posts
    • 151,749 Thanks
    silvercar
    Please explain what happens when consent to let (usually granted for a limited time) expires, but there is a tenant in situ?
    • leitmotif
    • By leitmotif 28th Aug 10, 8:37 PM
    • 244 Posts
    • 140 Thanks
    leitmotif
    I would like to add that my family and I nearly found ourselves homeless as our landlady, who was up for a repossession hearing, had lied to us about having CTL. I attended her repossession hearing, at which it emerged that she didn't have CTL. This would have meant that we would have been out on the street at very short notice and could well have lost most or all of our stuff to repay her debt. This was highly distressing, particularly as we had asked for confirmation that she had CTL and she had insisted she had. As it happened, she came to an agreement with her lender at that hearing.

    Thank goodness for the Mortgage Repossessions Protection of Tenants Etc. Act 2010 coming into force on 1st October this year!

    On another note, somebody asked what specific law is being broken if a LL does not have consent to let. Presumably this would be any law that states you must have certain types of insurance if you are letting your property to tenants - insurance you probably won't be able to get without CTL.
  • wodgerdodger
    Please explain what happens when consent to let (usually granted for a limited time) expires, but there is a tenant in situ?
    Originally posted by silvercar

    In our case the Lender merely asked do wish we wish to renew the CTL and pay them another £100 for another year. There were no questions of the rent covering the loan or tenancy details.

    We didnt as it happened so not sure if they would have asked for further info.
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