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RENTING? Check your LL has permission to let that property.
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S/he has the option of remortgaging with a BTL product, the Ts and Cs of which take into account the higher risk to the LenderJust 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?
It's not about labelling anyone in the manner you describe - Miss Moneypenny started the thread to simply alert Ts to the issues which could arise when a LL ( of the amateur variety) did not seek, and actually obtain,the Lender's CTL.This thread comes across as really passive aggressive towards landlords, but we're not all evil money grabbing tyrants.
Translation - "due to being offered at an unrealistic price" All houses will sell at the price appropriate to the market at the time of sale. There are still far too many vendors who bought at the wrong time and just cannot face up to the fact that they are likely to have to sell at a loss ( or simply not as big a profit as they had hoped for)I'm a regular joe, who had a house that wouldn't sell due to the crap market.
Did they suggest changing you mortgage product? Did you consider talking to a mortgage broker to further explore your options?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.
Ah yes, EAs. Presumably this EA now acts as your LA, pulling in a 10-12% fee from you? Funny how EAs want to be seen as "professionals" and yet would advise a client to deliberately breach the Ts and Cs of their current residential mortgage.My estate agent was also informed of this scenario and advised I just do it given I have very little choice.
So drop the selling price and get shut of the millstone round your neck.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.
Really? Your Lender may unfortunately think otherwise. You want to retain a mortgage product at a lower rate of interest than would be offered to you if your Lender knew that you were letting the property, and that is despite having actually been refused CTL.I don't like the tone of the OP. I am not trying to screw anyone over...
Do you perhaps also ignore other things such as tenancy deposit regs, LL insurances, gas safety certs, declaring your rental income to HMRC and so on? Amateur LLS who like to fly under the radar often do.0 -
Do you perhaps also ignore other things such as tenancy deposit regs, LL insurances, gas safety certs, declaring your rental income to HMRC and so on? Amateur LLS who like to fly under the radar often do.
No, everything has been done properly in fact my annual gas check is due next month. I pay a large chunk of rent to sort these things out.
I didn't even want to rent out at all, the only thing that pushed me into it was facing being charged full council tax for a period of unnocupancy over 6 months. I don't actually like the hassle of a tennant - yes it's a little extra income but I would rather sell my house which is originally what I tried to do.
It's ok to say "drop the price" but if I took negative equity I'd be unable to be a homeowner where I am now, so that's yet another trap I can't afford to fall into much in the same manner as I can't afford two sets of council tax.
Like I said, it's easy to point the finger but sometimes people have very little choice. I can't sell, I can't leave the house empty, my ONLY option would have been to abandon my plans to leave the city and stay put - something that was driving me to despair hence leaving!
As for re-mortaging, I'm not sure that's even doable on an offset mortgage. If the main issue at hand here is putting the tennant at risk by being unable to pay my mortgage then in my case there simply isn't a risk of that happening. I am literally 21 years ahead of my payments and am saving like mad trying to pay it off asap (in which case none of this will be an issue anyway).
Again trying to make the LL sound like the bad guy. Did you miss the part where I said I contacted my lender and asked permission? Twice, actually. Both times told it isn't buy to let and "tough". I am guessing offset mortgages simply can't be buy to let, or my lender is crap.Really? Your Lender may unfortunately think otherwise. You want to retain a mortgage product at a lower rate of interest than would be offered to you if your Lender knew that you were letting the property, and that is despite having actually been refused CTL.
I'm not trying to save interest, I didn't even know there were different rates for BTL until you mentioned it. Like I keep saying, not every LL is out there to make money. I'm a LL out of necessity not choice, and as such I'm a victim of the poor housing market right now just like everyone else.0 -
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.
So you are a landlord who has been refused consent to let the property; yet you let it anyway.My estate agent was also informed of this scenario and advised I just do it given I have very little choice.
If you have a letting agent that is that careless, aren't you worried about what else they are careless about? Legal requirements that you are legally responsible for?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.
Everything sells for the right price.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.
I would love your tenant to be in a house where the lender has given consent to let, instead of being in a house where the landlord has been refused permission to let!
I started this thread because of all the posts we were seeing from tenants' who paid their rent and them found out the landlord hadnt paid they rent and (like you) didn't have permission from their mortgage lender to let out the property, which left the tenant with little rights. I'm sure every borrower thinks they will always pay their mortgage payments.
New laws have helped a little, but as explained in this thread, that still doesn't help those on fixed contracts. Yes, they can sue the landlord and the letting agent, but that doesn't help them at the time.
However, they can protect themselves and their families, by simply ensuring the landlord does have consent from their mortgage lender, to let the property.
This thread is to alert tenants' to the fact that they should check to ensure the landlord has his mortgage lenders consent. Also to help other tenants' by reporting those landlords who don't have consent, to their lender and the HMRC. Although National Hunter is doing a good job of catching these types of landlords out, as it looks for mismatches on credit files names, for the property in question
Have you received written confirmation from your insurer, that they will still pay out in full on any claim, even though you have been refused permission to let the property?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 -
.. because yeah, it's not like I'm not stressed out enough. You're protecting tennants but trying to give landlords a nervous breakdown. If you think that makes you a good person, sure. Whatever.This thread is to alert tenants' to the fact that they should check to ensure the landlord has his mortgage lenders consent. Also to help other tenants' by reporting those landlords who don't have consent, to their lender and the HMRC. Although National Hunter is doing a good job of catching these types of landlords out, as it looks for mismatches on credit files names, for the property in question
FYI I have been 100% honest about my situation, and 100% honest that I did attempt to do everything correctly. From your tone and your threats I am guessing you don't believe some of us are genuine and not money grabbing tyrants.
And yet again someone saying a house will sell at the right price. I'm sorry but are people really so dillusional that they think an average working class person like myself can sacrifice 30 grand? Like it's pocket change? No I can't sell my house for 50-60k i.e. at a massive loss, as I'd be unable to buy a house here where I live now. Not to mention that losing 30k is basiaclly 15 years worth of savings; want me to slit my wrists whilst I'm at it?
Or should I have left the house empty and starved myself a cpl weeks each month so I can afford double council tax?
I also think you are oblivious of the fact that Bradford has no market right now. You'd really have to take a huge loss to sell; possibly more than my estimated 30k. I suppose that's my fault, too.
In all seriousness if you have any advice I'll listen. I have attempted to do this all the right way once already, afterall. How does one make a lender agree to buy to let when they previously would not. What if one already has a tennant at this point. What are the options if it's an offset mortgage. What are the repurcussions of remortgaging; can it even be done on this kind of mortgage. Should I just save up the last bit I owe and pay it off. Regarding your last point, you tell me. Do you need lender permission to let for valid building insurance; I've read nothing along those lines and have been looking at renewing recently.0 -
How does one make a lender agree to buy to let when they previously would not.
Its about consent to let on an existing mortgage rather than taking a buy-to-let mortgage. The whole system is a nonsense. What happens if you get CTL for a short period that runs out while you have a tenant in the property? Are you meant to evict (and what happens during the long eviction process?)We here of people being told to go ahead but the BS won't put it in writing to protect themselves in the event of repo'.What are the options if it's an offset mortgage.
If you are nearly completely offset and your lender won't give CTL and you decide to go ahead, you have the "power" to clear your mortgage if your lender took you to court. Though I've not heard of a case where a lender stood up in court and asked for repossession where the borrower had kept to repayments.What are the repurcussions of remortgaging
Remortgaging ie getting a new mortgage from a different lender means a new mortgage application. So you would be applying for a BTL mortgage. You can't apply for a residential mortgage if you intend to let out immediately - that would be obtaining money by deception.Do you need lender permission to let for valid building insurance
You need building insurance that allows for tenants living in the property. That is clear as the risks and liabilities are different. You would also have to inform the insurer of the mortgageor's interest in the property - which could generate a letter from the insurer to the mortgage company. Whether the FOS would uphold an insurer who refused to pay out on a building insurance that allowed for the property to be tenanted but there was no consent to let, I would doubt. But I don't know of rulings either way.
Look at the way the banks have managed themselves.
Look at the way they promise to "treat customers fairly", then ask if denying their customers the ability to pay their mortgage, with the least upheaval to their lives is reasonable.
That said, tenants have rights and if choosing to enter this business, you have to understand the responsibility of letting a property. The tenants have the right to make your property their home. The landlord needs the means to do this. That means having the funds to attend to repairs and all the other legal obligations that go with being a landlord.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 -
If you are nearly completely offset and your lender won't give CTL and you decide to go ahead, you have the "power" to clear your mortgage if your lender took you to court. Though I've not heard of a case where a lender stood up in court and asked for repossession where the borrower had kept to repayments.
I'm years ahead of repayments. Worse comes to worse I can borrow the last 14k and pay it off immediately.Remortgaging ie getting a new mortgage from a different lender means a new mortgage application. So you would be applying for a BTL mortgage. You can't apply for a residential mortgage if you intend to let out immediately - that would be obtaining money by deception.
Just to clarify the tennant is a recent thing, I lived there 7 years or so previously. So I am certainly not attempting deception, especially when I've since tried to change to BTL.
How does remortgaging an offset mortgage work? e.g. If I have -14k in my offset account. I can't get my head around what happens to my money if I change to a BTL (presumably non offset) mortgage; do I basically just pay off the part I've got in my offset account, and get left with 14k to borrow elsewhere? Plus a bit more, cos I can't really be left with a balance of 0; I need to live!
Or do I need to get a loan instead and just pay the offset off / own the house outright? At least I can get my head around that one, although I'm sure the monthly payments on a 15k loan would be quite high.You need building insurance that allows for tenants living in the property. That is clear as the risks and liabilities are different. You would also have to inform the insurer of the mortgageor's interest in the property - which could generate a letter from the insurer to the mortgage company. Whether the FOS would uphold an insurer who refused to pay out on a building insurance that allowed for the property to be tenanted but there was no consent to let, I would doubt. But I don't know of rulings either way.
See, it's amazing how difficult it can be to just simply do the right thing. This is a right old catch 22.
So now I have doubts over whether to renew my buildings insurance because I don't know what the repurcussions would be if said letter was sent to lender. If only the lender would just let me BTL, I would be happy to agree to their terms assuming they were affordable.
And my house will probably burn down tomorrow.
I'm thinking I need to get a loan maybe.0 -
In all seriousness if you have any advice I'll listen.
As I said, my warning is for tenants, to check that a potential landlord has received consent to let; after seeing post after post where some poor family have found out that they have little or no rights even though they have been paying the rent. It must be an awful situation to be in, brought on by no fault of their own.
There still seem to be quite a lot of landlords like yourself, who have let their property without their lenders consent. Or in your case, have let the property when you have been refused consent.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 -
That said, tenants have rights and if choosing to enter this business, you have to understand the responsibility of letting a property. The tenants have the right to make your property their home. The landlord needs the means to do this. That means having the funds to attend to repairs and all the other legal obligations that go with being a landlord.
Including the covenant of the right of quiet enjoyment of their home. How can a landlord uphold this right, if they give a fixed contract but have no in date Consent to Let?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 -
How does remortgaging an offset mortgage work? e.g. If I have -14k in my offset account. I can't get my head around what happens to my money if I change to a BTL (presumably non offset) mortgage; do I basically just pay off the part I've got in my offset account, and get left with 14k to borrow elsewhere? Plus a bit more, cos I can't really be left with a balance of 0; I need to live!
Or do I need to get a loan instead and just pay the offset off / own the house outright? At least I can get my head around that one, although I'm sure the monthly payments on a 15k loan would be quite high.
Your choice. If you are applying for a BTL mortgage you choose the amount you want to borrow. How much you leave in savings is upto you. Offset BTL is not very tax efficient, so I doubt such a product is popular, but may be possible.
In practical terms, you shift your savings pot elsewhere, take out a new mortgage that is used to repay the old one (utilising some of your savings pot to reduce the outstanding balance if you are borrowing a lower amount.)So now I have doubts over whether to renew my buildings insurance because I don't know what the repurcussions would be if said letter was sent to lender. If only the lender would just let me BTL, I would be happy to agree to their terms assuming they were affordable.
No brainer. You have to have buildings insurance that allows for tenants, if you are letting your property.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 -
How does remortgaging an offset mortgage work? e.g. If I have -14k in my offset account. I can't get my head around what happens to my money if I change to a BTL (presumably non offset) mortgage; do I basically just pay off the part I've got in my offset account, and get left with 14k to borrow elsewhere? Plus a bit more, cos I can't really be left with a balance of 0; I need to live!
Or do I need to get a loan instead and just pay the offset off / own the house outright? At least I can get my head around that one, although I'm sure the monthly payments on a 15k loan would be quite high.
The mortgages board will be able to give you advice on that if you start a thread on there.So now I have doubts over whether to renew my buildings insurance because I don't know what the repurcussions would be if said letter was sent to lender. If only the lender would just let me BTL, I would be happy to agree to their terms assuming they were affordable.
And my house will probably burn down tomorrow.
You need full cover.
As I have said before: a friend of mine rents out his house while he is abroad and his tenants' had a fire in the kitchen. There was damage to the kitchen and just some minor smoke damage to the dinningroom, as his tenants' had the sense to close the door.
He had to pay to rehouse his tenants' until the work was completed, but found he hadn't opted for the extra part of his landlords insurance, where the insurers pay for this.
He then asked the insurers to come to view the damage as soon as possible to speed up his claim. After checking that he had Consent to Let, they viewed and then refused his claim as he had ticked "no" to a flat roof. He didn't realise that the small plastic roof on the sunlounge built on the back of his house, counted as part of his main roof.
Insurers seem to look for ways to get out of paying on a claim but are happy to take your money. Why give them reasons to refuse your claim?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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