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

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  • silvercar
    silvercar Posts: 49,541 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    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?

    By keeping up with mortgage repayments and therefore avoiding the property being repossessed.
    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.
  • silvercar
    silvercar Posts: 49,541 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    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?

    If he'd asked on the insurance board, I'm sure he would have been advised to follow his insurers complaints procedure and on to the FOS if necessary. Unless the insurers could show that having a flat roof impacted on the fire in some way, they would be on a sticky wicket.
    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.
  • silvercar wrote: »
    By keeping up with mortgage repayments and therefore avoiding the property being repossessed.

    And if they don't pay their mortgages? Everyone thinks they can pay the mortgage when they take it out; but statistics show that isn't the case.

    Every tenant has the covenant of the right of quiet enjoyment of their home, but how can a landlord give this if he never had permission to let out the house and the tenant is removed by the mortgage lender, while they still have a fixed term contract?
    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
    edited 31 October 2011 at 11:32PM
    silk wrote: »
    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!

    Taking the figures from your thread:

    https://forums.moneysavingexpert.com/discussion/comment/47994591#Comment_47994591

    Property purchased for 85K.
    Currently worth in your opinion 105K, didn't sell at 92K, but you think you could get 85K for a quick sale.
    Amount owing on mortgage 14K.
    Rent 450 p/m.

    Whichever way you look at these figures you should have no problem remortgaging. If it's valued at 85K and you have up to 71K deposit. You haven't said why you are so keen to keep an offset mortgage, really if you keep enough savings back does that matter? You still have enough deposit to have plenty of choice of BTL mortgage. I agree with the earlier comment it's worth asking on the mortgage board.
    silk wrote: »
    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.

    The proof of the pudding with insurance is when a claim is made. ARLA have some comments about it here:

    http://www.arla.co.uk/information/insurance/buildings-insurance/

    "Consent. It is essential that you advise and obtain consent to let your property from your mortgage lender, existing insurer and head lessee (for leasehold properties). Failure to obtain written consent from these parties may render your insurance void in the event of a claim. Sadly there have been many instances where buildings claims have been totally rejected because the insurer and or mortgage lender was not advised the property was let."

    So maybe you want to check that point with your insurer? I would suggest you must have insurance appropriate for a landlord. If your house did burn down then costs may be more than just a damaged house if the tenant is injured, have you considered that?
  • silk_2
    silk_2 Posts: 215 Forumite
    Tenth Anniversary 100 Posts
    franklee wrote: »
    Whichever way you look at these figures you should have no problem remortgaging. If it's valued at 85K and you have up to 71K deposit. You haven't said why you are so keen to keep an offset mortgage, really if you keep enough savings back does that matter? You still have enough deposit to have plenty of choice of BTL mortgage. I agree with the earlier comment it's worth asking on the mortgage board.

    I'll post there, as I just have no idea how it works, and that's why I'm still on an offset mortgage and it's the only reason..
  • silk_2
    silk_2 Posts: 215 Forumite
    Tenth Anniversary 100 Posts
    News update, current lender's "systems have changed" and now they are happy to give permission to let. So I can sort everything out and it's only gonna cost £100. A huge weight off my shoulders I can tell you.
  • silk wrote: »
    News update, current lender's "systems have changed" and now they are happy to give permission to let. So I can sort everything out and it's only gonna cost £100. A huge weight off my shoulders I can tell you.

    All that worry and all it took was a phonecall to protect you and your tenant. Your insurance should be ok too, now.
    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.


  • silk_2
    silk_2 Posts: 215 Forumite
    Tenth Anniversary 100 Posts
    All that worry and all it took was a phonecall to protect you and your tenant. Your insurance should be ok too, now.

    Aye, but I wasn't to know this given I'd tried once before. :p

    And yeah sorting insurance as soon as I get the letting forms signed and sent off.

    Hopefully from all this you've seen we aren't all bad LL's, some of us want to do the right thing. Was even going to sell my car and scrounge up enough to buy the house if it came to that!
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    edited 1 November 2011 at 10:32PM
    silk wrote: »
    Aye, but I wasn't to know this given I'd tried once before. :p

    And yeah sorting insurance as soon as I get the letting forms signed and sent off.

    Things change, some lenders are bending. Glad to hear it is all sorted and you won't have to worry about your insurers.
    silk wrote: »
    Hopefully from all this you've seen we aren't all bad LL's, some of us want to do the right thing. Was even going to sell my car and scrounge up enough to buy the house if it came to that!

    I sold my car to put towards my first house. Like you, I have been a landlord (with CTL;)), tenant and home owner. The landlord I had was great and had his properties on BTL, so it was easy for me to download a copy of the deeds from Land Registry and see he had permission to rent his property..

    I don't think all landlords are bad, but the ones who set out to avoid getting CTL and put their tenants' at a disadvantage, are. If you saw some of the heartbreaking threads on here, I'm sure you would understand why the tenants need to protect their families by checking for CTL.
    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.


  • Hi,

    I've been reading through some of the posts to this thread.

    I just wanted to give certain people here an insight to why this happens from a personal point of view and to remind those certain people that some LL's are just ordinary, normal people that are living a normal everyday life but the only way out of a situation is to go against your principals and 'the right thing'.

    Now I am a great believer in doing the right thing however I had been living in my house for nearly 10 years and during that time as well as gaining a wife and 2 kids, gained increased expenditure like the rest of us through increased utilities, food, fuel bills etc.

    I have a good job paying a decent salary, even over the baseline for my skills. Even after cutting back on damn near everything including reducing repayments of accumulated debts between me and my wife to almost the minimum, we were still struggling to make ends meets.

    Before some wise crack says it, we have all been young, and stupid once but also later in life just trying to make a better life for our family hence the debt and we are paying it off without gaining further debt.

    Now other than working even more hours that god sends for little gain, being constantly tired and not seeing my family the only other choice to reduce some of the pressure of all the monthly direct debits and to give us some financial relief to concentrate on paying off our debts was to downsize by moving in with parents and rent out our property.

    Yes, I did this without a CTL mortgage. Why? It was done in a rush to relieve the stress it was causing on the whole family and because the Halifax wanted me to pay £550 pm for a CTL where I am currently paying £300 as well as all the associated admin fees. Why didn't I do it? Because the maximum rent for the type of property in the area I own my house only covers 3/4 of that £550pm.

    Now you may ask say "ok then you would only be paying £100 or so on your mortgage yes so surely that better than £300". Correct but only when a tenant has moved in and is paying rent, any months that the property is empty or we are living in it prior to that will be at the full whack. An increase we could not afford when we were downsizing our finances.

    Now that a tenant has moved in and paid rent within the last 2-3 weeks, I will only now be seeking the CTL from the lender. This is the right thing to do, maybe not in the correct order, but still the right thing.

    My agent is happy, my tenants are happy, we as a family are getting back on our feet financially and are happy. I don't necessarily agree with how its been done but it was the only way to do it in our case.

    So please, those certain people, remember that not all LL's are money-grabbing swines. Some of us are human and just trying to the do the best thing for all, unfortunately as I have learnt through out life and especially having my own business at one time and dealing with clients, you cannot please everyone all at once.

    Im sure that those certain people will rip my post apart, feel free. This is our situation and how we are dealing with it and remember that we are going to be doing the right thing. Have some heart and consideration please.

    Thanks.
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