RENTING? Check your LL has permission to let that property.

franklee

Well this is a record for what I've heard, repossessed on key handover day!

However the day before they moved in, Mr Walker's partner went to collect the keys and discovered a nasty surprise.

"The keys didn't work. There was a notice on the door, saying the flat had been repossessed," says Mr Walker. "It had happened that morning - so the day we were due to get the keys to the flat it had been repossessed."

http://news.bbc.co.uk/1/hi/programmes/working_lunch/7949165.stm

MissMoneypenny

silvercar wrote: »

I'm thinking of someone who can't afford their home and rents it out getting consent to let on a resi mortgage. If one tenant last 6 months, there will be less than 6 months of consent to let left.

IMO, a BTL mortgage is safer for the tenant as the permission for tenants is built into the mortgage whereas consent to let has a limited timespan. Also gaining consent to let suggests that the landlord never intended letting the property so may not have sufficient funds set aside for repairs and could be (but not always) short of cash hence the letting of the home in the first place.

That's a good point about noting the time remaining on the Consent to Let. I've added it to the opening post.

It is still worth tenants checking up on a Buy to Let mortgage also, by checking on Land Registry on the deeds. These list the charges against the property and a tenant can see if a landlord has been racking up debts against the property.

Fred1_2

silvercar wrote: »

What happens if a landlord has received consent to let on a residential mortgage? "Consent to let" is temporary and the lender can refuse to renew the consent. If the consent to let is not renewed and the tenancy is still running the tenant can find their position vunerable.

I'm going to stop complaining about RBS. Not only did they grant me consent to let, they only charged me £100 for the privilege, didn't up the interest rate and have granted me consent for "any current or future tenancy" with no end date specified.

socrates

Fred1 wrote: »

I'm going to stop complaining about RBS. Not only did they grant me consent to let, they only charged me £100 for the privilege, didn't up the interest rate and have granted me consent for "any current or future tenancy" with no end date specified.

Now thats a deal and a half - your LTV must be good!

Fred1_2

socrates wrote: »

Now thats a deal and a half - your LTV must be good!

It's not that wonderful at 70%. I've looked at moving mortgages and even if I were to go down to 60% I couldn't match the interest rate. Trouble is, it;s an SVR, so I'd like to move to a long tem fix before interest rates skyrocket, as I'm sure they will. Until, I find a deal which appeals, I'm piling money in to reduce my LTV.

MissMoneypenny

Bumping this up so renters know how important it is to check a landlord has received Consent to Let from their mortgage lenders.

Some posters are still, sadly, encouraging home owners to let without permission
http://forums.moneysavingexpert.com/showthread.html?p=20743881&posted=1#post20743881

stolt

hi w are about to give notice on our bungalow we have been renting, started off at months and currently 18months in. Had some lettters from accord mortgages and its to the landlord saying they have reason to believe that they are renting there property out and therefore are changing there mortgage to a BTL mortgage which has an additional 2% interest rate on the rate that they had. Shall i keep quiet now and say nothing, we should be moving out in June.

stolt

theartfullodger wrote: »

Errr... "Interfering with the mail" can land you in prison (rarely..) so I'm sure the envelope just fell open and you couldn't help reading it...

If the LL is daft enough not to tell lender he's moved & started renting the property out more fool him.. Chances are he may not have told HMRC & is fiddling his tax. Could be he's honest of course...
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/ContactOrDealWithHMRC/DG_10010579
- to report tax fraud (IMHO tax fiddling is at least as "bad" as benefit fraud...)

Wonder if he handled the deposit correctly (3x deposit fine on offer to the tenant in some circumstances..) etc. etc. (?Insurance?)

Give your notice when required by the tenancy agreement & your planned moved and live a happy life in the new house!

Best wishes to all, including those who don't agree with me..

Lodger

thanks, yeah well i'm blaming the kids, my fault i let them open the mail when it comes through the postbx, missus rang me at work to say that the landord can rent it out or can now, i wonder how the bank found out hes renting the place out, i suppose now he must now because the payments have increased!;) As we are nearly out theres no point reporting him, he might find a reason to hold some of my deposit.

MissMoneypenny

stolt wrote: »

hi w are about to give notice on our bungalow we have been renting, started off at months and currently 18months in. Had some lettters from accord mortgages and its to the landlord saying they have reason to believe that they are renting there property out and therefore are changing there mortgage to a BTL mortgage which has an additional 2% interest rate on the rate that they had. Shall i keep quiet now and say nothing, we should be moving out in June.

I would, without a second thought about it. He was quite willing to put your family at risk by not asking for consent to let.

I doubt if he has been declaring his income to the tax office, so I would tell them too.

Do other families a favour and report these rogue landlords.

Those landlords who haven't got consent to let and/or are avoiding their taxes, might try to talk you out of it.

MissMoneypenny

stolt wrote: »

As we are nearly out theres no point reporting him, he might find a reason to hold some of my deposit.

It's a bargaining point to make sure you get all of your deposit back. Then report him.