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

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  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Without the lenders permission to let, you could be thrown out of the property without any notice.
    How?
    Only if the landlord defaults on the mortgage, in which case the tenant'd be thrown out anyway!
  • wisbech_lad
    wisbech_lad Posts: 295 Forumite
    G_M wrote: »
    How?
    Only if the landlord defaults on the mortgage, in which case the tenant'd be thrown out anyway!

    Um, no, see the post above. If the landlord has permission to let from the lender, then under some circumstances you have a binding tenancy.

    Plus, a landlord who "does things by the book" IMHO is more likely to be financially conservative, and less likely to default. It is no guarantee of course.
  • silvercar
    silvercar Posts: 49,524 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Tenants should also check their tenancy agreements. A lot of agreements have a clause requiring the tenant to give up the tenancy if the lender repossesses.
    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.
  • littlemisslettings
    littlemisslettings Posts: 24 Forumite
    Sorry if this has already been asked but CBA reading 10 pages of posts.....

    does anyone know what the figures are for tenants being evicted by mortgage companies where LL does not have permission to let?
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    Just a reminder to renters to be very careful to check that they are renting a property from a landord who has recieved 'consent to let', from their mortgage lender.
    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.


  • franklee
    franklee Posts: 3,867 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    MissMoneypenny wrote: »
    Just a reminder to renters to be very careful to check that they are renting a property from a landord who has recieved 'consent to let', from their mortgage lender.
    Another take on what can happen here:

    Consent to Lease - stuck between a rock and a hard place!
    http://forums.moneysavingexpert.com/showthread.html?p=23595915#post23595915

    Clearly the landlord is in financial difficulties which the lack of consent to let is now making far worse as the lender is asking for 2% more. Perhaps if the landlord had realised this in advance he would not have let out backing himself into an awkward corner.
  • franklee
    franklee Posts: 3,867 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    A more detailed page from Shelter here, Repossession by a landlord's lender:

    http://england.shelter.org.uk/get_advice/repossession/repossession_by_a_landlords_lender?SQ_DESIGN_NAME=print
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    franklee wrote: »
    A more detailed page from Shelter here, Repossession by a landlord's lender:

    http://england.shelter.org.uk/get_advice/repossession/repossession_by_a_landlords_lender?SQ_DESIGN_NAME=print

    Thanks for that link franklee.

    "If your landlord bought the property through a buy-to-let mortgage, you will normally be in a stronger position than if your landlord's lender did not know that the property was rented out. This is because your tenancy has effectively been formally recognised by the landlord's lender, which means that it is binding on them (see below)."

    From your link (my bold).
    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.


  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    edited 28 July 2009 at 2:03PM
    It's interesting how there are still threads on this site almost weekly, showing how some landlords don't want asks for consent to let from their mortgage lender, because they are worried they will refuse this permission. Or that their lender will charge them a fee to let the property. They also don't want to get a buy to let mortgage as the mortgage interest rate is higher than a residential mortgage.

    Then there are those forum members that advise posters, to rent out the property without the lenders permission!

    Not a thought to the family that rent that property and how little notice they will get if the lender does a repossession.

    What a greedy, selfish society we have created.
    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.


  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    The following is a relevant link about letting a property without a lenders consent, with comments from a solicitor.

    http://www.landlordzone.co.uk/forums/showthread.php?t=1499&page=6
    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.


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