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RENTING? Check your LL has permission to let that property.
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Don't waste the 3 quid money is hard enough to get without giving it away ;-)0
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if the property was previously the main residence of the (now) landlord, the land registry will show the property address as the registered address of the owner. The landlord could well have consent to let from the lender, or he may not.
The tenant should ensure that the landlord is able to provide proof that they have been granted permission from their mortgage lender, to rent the property and check that that proof is genuine. It is too risky for the tenant if they just take the landlords word that they have received permission, as the tenant could be thrown out by the mortgage lender will little or no notice to move. If in doubt, don't rent that property.There is also no way of knowing if the landlord has offered the property as security for any business loans etc. Even if the landlord has "just" given personal guarantees to banks, in the event of a business folding, the lender could pursue a charging order on the property and eventually try to take possession of it.
If the landlord had permission to let from their mortgage lender, then the tenant would be given at least 2 months notice to find another property. Without the landlord asking for permission to let, the tenant could be thrown out with little of no notice.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
The tenant should ensure that the landlord is able to provide proof that they have been granted permission from their mortgage lender, to rent the property and check that that proof is genuine. It is too risky for the tenant if they just take the landlords word that they have received permission, as the tenant could be thrown out by the mortgage lender will little or no notice to move. If in doubt, don't rent that property.
I totally agree, but there is no document that can be produced which shows that the landlord has the correct mortgage. Lenders won't discuss landlords affairs with tenants due to data protection.If the landlord had permission to let from their mortgage lender, then the tenant would be given at least 2 months notice to find another property. Without the landlord asking for permission to let, the tenant could be thrown out with little of no notice.
Agree, in a straight forward mortgage situation. Won't apply to personal insolvency and business failings.
There really should be a certificate. Any tenant looking at a property should be shown gas certificate, EPC, building insurance and mortgage letting approval documents.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Expand on this please - did you use any of the funds for a new place?
When did you raise the money?
What reason did you give for needing the funds that you raised?0 -
I think we need a mortgage adviser on this one - could be perceived as raising money for BTL but saying something else.
You need to tell the lender your intentions perhaps they will just be happy to have the mortgage serviced every month regardless of your intentions.0 -
To be honest though - if a mortgage is being serviced even if the lender found out I doubt people would be turfed out.
Seems a bit extreme - perhaps people can let us know what happened in their experience.
There have been many threads on here where people have paid their rent, only to find out that the landlord didn't pay the mortgage. The thread that sticks in my mind the most was the one where the tenant was given half an hour to put stickers on their property before he had to leave the rental house.
If the Landlord had received permission from the lender to let the property, then the tenant would have been given at least 2 months to find another house.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0 -
If the Landlord had received permission from the lender to let the property, then the tenant would have been given at least 2 months to find another house.
Only if the judge insists that the lender does this on the grounds that the lender knew there were tenants. If the judge doesn't insist and this is less likely if the tenants do not appear in court, the judge could still grant immediate possession.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
mini_cooper wrote: »Hi, I have been a lurker to this site for many months and found an lot of great info.
I have just rented my flat, but I did not ask my lender for approval.
I have an offset mtg and raised another mortgage on another property. The property that is rented has a £95,000 mtg on it and £94,900 in the savings pot.
I really don't think I should ask permission, but your thoughts and comments would be welcome.
You took a residential mortgage and are now not living in the property. This is something that you should be telling your lender. As the monthly payments are virtually nil there is almost zero chance of you defaulting on the mortgage, so the risk to your tenants is negligible. Presumeably you have the right to withdraw money from the savings pot and so create a real mortgage monthly payment requirement.
Interesting tax situation you have created. I wonder whether the interest on the new mortgage could be considered an expense of your letting business or not. Also, depending on the treatment of your savings pot by your lender whether the interest on the offset mortgage can be claimed as a business expense.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
mini_cooper wrote: »Hi, I have been a lurker to this site for many months and found an lot of great info.
I have just rented my flat, but I did not ask my lender for approval.
I have an offset mtg and raised another mortgage on another property. The property that is rented has a £95,000 mtg on it and £94,900 in the savings pot.
I really don't think I should ask permission, but your thoughts and comments would be welcome.
In addition to above comments :
Would you still be covered by your building insurance !!!0 -
Only if the judge insists that the lender does this on the grounds that the lender knew there were tenants. If the judge doesn't insist and this is less likely if the tenants do not appear in court, the judge could still grant immediate possession.
Even if the lender has a buy to let mortgage, which means that the tenant has a legal contract and therefore has to be given at least 2 months notice to find another property? Which cases were these?
I can understand the "immediate possession" being given by the judge if the landlord has failed to ask permission from their lender if they may rent the property out.
It's very, very important for tenants to check that the landlord has received permission from their lender to rent the property out.RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0
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