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

worried-tennant-2011

Hi just found out by downloading the resgistry thing that my landlord does not have permission to be letting the house to us.
We've lived here 3 yrs.

I only found out about doing the registry check whilst looking on here for help.

Basically my landlord confessed last week that he hasn't paid the mortgage for the past 3 months, and has broken a repayment agreement for the 3 time in 3 yrs now (the whole time we've been living here).

Lord only knows why he can't afford to pay as his mortgage is only £575 per month and he charges us £830 to live here.

We have dodgy central heating that he can't afford to fix, there are a total of 8 heaters in the house and only 2 of them heat up.
My gas boiler don't work, again he can't afford to fix.

so i came on here to find out what would happen if he continues to fail to pay the mortgage even though we are paying him?

Would we be chucked out without notice if the house gets taken off of him??

This really worries me as i have two young children, the eldest being 4 who is starting school in two weeks and my youngest is 5 months old.

I also know he has not protected our deposit- what can i do about that?

silvercar

franklee wrote: »

If the tenancy is binding on the landlord's lender the tenant gets a minimum two months notice. If the property is repossessed the fixed term may be cut short but at least the tenant knows the tenancy will come to an and in an orderly fashion, likely with two months notice under section 8. This is quite a long procedure as after the two months notice if the tenant doesn't leave a possession order will have to be obtained. The tenant knows where they stand.

Is this a change of view? I thought BTL or CTL would give the tenant until the end of the fixed term. So are you saying the fixed term is not binding on the lender even with CTL?

silvercar

worried-tennant-2011 wrote: »

Hi just found out by downloading the resgistry thing that my landlord does not have permission to be letting the house to us.
We've lived here 3 yrs.

You can't see if your landlord has consent to let from the land registry. If the landlord is registered at living at the property address, he may or may not have CTL.

Basically my landlord confessed last week that he hasn't paid the mortgage for the past 3 months, and has broken a repayment agreement for the 3 time in 3 yrs now (the whole time we've been living here).

Lord only knows why he can't afford to pay as his mortgage is only £575 per month and he charges us £830 to live here.

We have dodgy central heating that he can't afford to fix, there are a total of 8 heaters in the house and only 2 of them heat up.
My gas boiler don't work, again he can't afford to fix.

so i came on here to find out what would happen if he continues to fail to pay the mortgage even though we are paying him?

Would we be chucked out without notice if the house gets taken off of him??

This really worries me as i have two young children, the eldest being 4 who is starting school in two weeks and my youngest is 5 months old.

I also know he has not protected our deposit- what can i do about that?

Make sure the lender knows the property is tenanted. That way you will get notification if the lender repossesses. Thanks to the repossession act of 2010 you will get 2 months notice, but you will need to attend court to ask for it.

Ask your local council private rent officer for help with a landlord not repairing heating and hassle the landlord about the non protection of your deposit.

Start looking for somewhere else to live.

franklee

worried-tennant-2011 wrote: »

Hi just found out by downloading the resgistry thing that my landlord does not have permission to be letting the house to us.
We've lived here 3 yrs.

I only found out about doing the registry check whilst looking on here for help.

Basically my landlord confessed last week that he hasn't paid the mortgage for the past 3 months, and has broken a repayment agreement for the 3 time in 3 yrs now (the whole time we've been living here).

Lord only knows why he can't afford to pay as his mortgage is only £575 per month and he charges us £830 to live here.

We have dodgy central heating that he can't afford to fix, there are a total of 8 heaters in the house and only 2 of them heat up.
My gas boiler don't work, again he can't afford to fix.

so i came on here to find out what would happen if he continues to fail to pay the mortgage even though we are paying him?

Would we be chucked out without notice if the house gets taken off of him??

This really worries me as i have two young children, the eldest being 4 who is starting school in two weeks and my youngest is 5 months old.

I also know he has not protected our deposit- what can i do about that?

For the possible repossession suggest you read the information in these two:
Shelter repossession by landlord's lender:
http://england.shelter.org.uk/get_advice/eviction/repossession_by_a_landlords_lender
Guidance for the Mortgage Repossessions (Protection of Tenants etc) Act 2010:
http://www.communities.gov.uk/publications/housing/mortgagerepossessionguidance

As for your deposit, you can ask the landlord to protect it and threaten to sue for 3x the deposit as penalty if he fails to do so, but you can't practically go ahead with it in most cases as if the tenancy ends or the deposit is protected your claim for 3x will fail costing you money. If he ignores your request then I don't know what you'd do, apart from the old fashioned withhold the last months rent which may have implications. Normally the advice would be to claim any deposit due to be returned after the tenancy ends but in your case if he's broke and got repossessed there may not be any money there.

For the heating there are ways of getting this done out of the rent money but it takes ages and your tenancy may well end before you get anywhere with it, details here:
http://england.shelter.org.uk/get_advice/repairs_and_bad_conditions/repairs_in_private_lets/landlord_refusing_to_do_repairs
http://www.letlink.co.uk/case-law/rent/lee-parker-v-izzet-1971.html

Are you free to give notice and if so can you arrange to move?

cavemonkey

Twinkle Star, did you ever get Consent to let from FirstPlus?

iheartbristol

I once refused someone a mortgage against their home when the valuer found tenants in there. (the guy had applied for a homeowner loan). He was absolutely furious with me and claimed that the tenant would only be there for 6 months. Needless to say he still wasn't allowed the mortgage and in the end be actually pulled his finger out and got a BTL mortgage instead.

carlyberyl

Hello can anyone help me with a consent to let mortgage please? Halifax have just informed us that they want to put our payments up £100 a month plus charge us £1500 every 3 years for this type of mortgage! Have spoken to a mortgage broker who has never heard of a company charging so much especially if you are an existing customer. We have got the house up for sale but due to the current climate we can't sell which is why we have decided to rent, it's not a huge business plan we have or anything, once the Market picks up we still intend to sell, but if Halifax are wanting all this plus we have agents fees an insurances to pay plus our moving costs we are seriously going to be out of pocket! Please can anyone help us? Halifax seem to be telling us one thing one minute, something else the next!

tbs624

hi Carlyberyl - you'll probably get a better response to your query if you go to the main HBR&S board and hit the "New Thread" button up at the top left.:)

However.....

There is a greater risk for the lender when a property is let out so many of them *will* charge you for the privilege of you being granted CTL on your residential mortgage. If you have little equity in the property that will also count against you.

You may also struggle to get Ts in - many Ts understandably do not want an amateur LL and to take up a tenancy in a property that is also up for sale - they don't want the disruption of viewings etc ( in what would after all be their home during the tenancy) and they won't want the insecurity that comes with the property being sold.

If your house is not selling is it on at the right price when compared to other similar properties in your area? Perhaps you/your agent need to be more realistic.

You could always post your property on the Board and let the resident "House Doctors" give you their thoughts....

h34v3ns3nt

carlyberyl wrote: »

Hello can anyone help me with a consent to let mortgage please? Halifax have just informed us that they want to put our payments up £100 a month plus charge us £1500 every 3 years for this type of mortgage! Have spoken to a mortgage broker who has never heard of a company charging so much especially if you are an existing customer. We have got the house up for sale but due to the current climate we can't sell which is why we have decided to rent, it's not a huge business plan we have or anything, once the Market picks up we still intend to sell, but if Halifax are wanting all this plus we have agents fees an insurances to pay plus our moving costs we are seriously going to be out of pocket! Please can anyone help us? Halifax seem to be telling us one thing one minute, something else the next!

Hi carlyberyl,

My mortgage is with the Halifax and I am about to let my house out. I have just signed the documents (acceptance letter & consent to lease agreement) The discount rate on my mortgage was due up on the 31st Oct anyway from a 3yr fixed rate residential at 5.89%. I was given very little options to secure CTL on the property. A 3yr fixed at 5.69% with a £1499 arrangement fee and a 3yr tracker at BOEBR + 5.89% with a £599 arrangement fee. I took the fixed and paid the £1499 up front.

My circumstances have changed you see, found the love of my life and decided to live with her and let my place out. I didnt want to sell. So CTL was a good option for me. I just dont have the equity in the house at the moment to secure a BTL. Yes im angry at the £1499 arrangement fee, and yes im angry at the 0.2% reduction difference in what im currently paying, BUT...

Mostly everything can be claimed as expenses when you declare your earnings from the rent to the HMRC. Essentially after the rental income (£625) and declaring all the tax figures, it works out for me that im paying £70 for my house per month instead of £667. It's a no brainer. So really, the 5.69% makes no odds to me. If I were to bring costs down, by dropping the agent for example, so I made more profit, I would pay more tax so its all swings & roundabouts.

They have you by the balls every step of the way. The only people making money out of this entire arrangement are the lenders (halifax) and the HMRC.

Also im not sure an IFA could advise much in this situation (i didnt see one), as you are not switching to a new residential mortgage. You want to lease it. So its either a CTL or BTL. You cannot secure a CTL with another lender immediately anyway (6 months occupancy minimum), so you couldn't switch lenders on those grounds. And most BTL mortgages currently require you to be under the 70% LTV threshold, which off the record mine wasn't (at 92% based on current market value)

So in some ways, im actually grateful of the halifax!

silk_2

Just a question from the other side of the coin - what if a landlord wants permission to let and the lender won't give it e.g. for an offset mortgage? What would the landlord have to do to be able to rent it out?

This thread comes across as really passive aggressive towards landlords, but we're not all evil money grabbing tyrants.

I'm a regular joe, who had a house that wouldn't sell due to the crap market. I wanted to get out of City A and move to City B. The only way I could do this was to rent. I called my lender to get permission and was told quite bluntly that you can't let on this kind of mortgage. No further advice offered.

My estate agent was also informed of this scenario and advised I just do it given I have very little choice. If the house wouldn't sell, which it wouldn't, then the council would in 6 months time of unnocupancy charge me council tax. I can't afford two lots of council tax.

I don't like the tone of the OP. I am not trying to screw anyone over, I am 20 years ahead on my offset mortgage, my tennant is happy and couldn't be safer and I have very little left to pay off.

If I followed the advice of the OP I'd have to kick my tennant out since I can't on my current mortgage get permission to let. I'm sure she'd love that.