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

rentergirl

silvercar wrote: »

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.



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've seen people given notice of their landlords impending repossession by having bailiffs hammer on the door. Bring back the notice of the sitting tenant, and let tenant stay for at least one year if landlords are repossessed. Tenants pay for their own credit checks: landlords should also pay.

MissMoneypenny

betelgeuse wrote: »

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.

It is a worry that you have all this debt and therefore decided to rent out your house, even though you were refused Consent to Let by your mortgage lender.

Are you also aware that your landlords insurance might not pay out if your tenant is injured or there is damage to your house such as a fire? ARLA are already warning landlords about this.

http://www.arla.co.uk/information/in...ngs-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."

MissMoneypenny

Experian now offering another service to mortgage lenders to find those who rent out a property without permission.

Identification of undisclosed Buy-to-Let risk

When a customer lets out their home without advising their mortgage lender, it means the debt is incorrectly priced and risk is increased. Getting early notification of properties to rent with Mover Alerts allows the lender to be proactive in protecting its position
http://www.experian.co.uk/consumer-information/mover-alerts-information.html

(with thanks to Trollfever)

This doesen't' meant that tenants' shouldn't check themselves that the landlord has received Consent to Let, as it is still very important for tenants to take this simple step to protect themselves and their families.

nickpe

it seems the lenders are taking more and more steps to try and catch out the ones that are not notyfying them.
I would be considered if i was one of them.

Annabee

So what happens here, if you contact the lender? Do you ever get to find out the outcome? And how should you write to them?

Could you sue the LL for letting without consent, thus providing an invalid tenancy? Could you sue the letting agency?

And if so, could you still do this after the tenancy has finished?

MissMoneypenny

Annabee wrote: »

So what happens here, if you contact the lender? Do you ever get to find out the outcome? And how should you write to them?

You can write or phone them and ask if they are aware that a tenant lives in the property and has done since x date. I doubt you would get to hear the outcome, unless you hear the landlord moaning that he has been caught.

Annabee wrote: »

Could you sue the LL for letting without consent, thus providing an invalid tenancy? Could you sue the letting agency?

If you haven't made a loss, then I doubt it. However, if the LL gets repossessed while you are the tenant, then you should have a claim against the LL and LA too for your losses and stress.

Tenants' should always take out the optional extra of Legal Cover with their house contents insurnace and ensure that their Legal Cover policy does not exclude action against/defending against, a landlord, under the contracts section of the insurance. When I checked last March, the legal insurance firms ARAG and DAS offered good policies, but you need to read these before you take out any policy.

Annabee wrote: »

And if so, could you still do this after the tenancy has finished?

Suing? I assume only if you made a loss.
Report a landlord to his mortgage lender? Yes; lenders are always interested to hear of anyone who has let their property without receiving consent.

zappahey

We have just received mail, addressed to the landlord, advising that his let is unauthorised and that his interest rate is going up unless he can confirm that he is living there personally.

So, in a quandary as to how much risk we are carrying and what to do next. Should we contact the lender and confirm that we are here? Would that actually provide us with any additional security?

franklee

zappahey wrote: »

We have just received mail, addressed to the landlord, advising that his let is unauthorised and that his interest rate is going up unless he can confirm that he is living there personally.

So, in a quandary as to how much risk we are carrying and what to do next. Should we contact the lender and confirm that we are here? Would that actually provide us with any additional security?

Hopefully he can't provide proof he is living at your address if you are on the electoral roll and not him, council tax and utilities in your name etc.

If there is no evidence of arrears and your landlord can afford the higher interest rate then hopefully you will be OK. I guess you run the risk of being served an S21 notice if the landlord thinks letting is no longer profitable enough.

I would let the lender know I was there although it won't necessarily make any difference to your rights it may at least put you in the loop to be notified and prevent him claiming to live there. OTOH I suppose the lender may give consent to let if the higher rate is paid you would have to ask. Otherwise should there be a repo you will still fall under the Mortgage Repossessions (Protection of Tenants etc) Act 2010 so I suggest you familiarise yourself with that and do make sure you read all letters addressed to the occupier as that's how you will get notice of any repo.

Guidance to the Mortgage Repossessions (Protection of Tenants etc) Act 2010
http://www.communities.gov.uk/publications/housing/mortgagerepossessionguidance

nickh300

My girlfriends worried now, gonna have to check

Rallan1984

Good day guys

Been reading avidly but really need some answers about something.

My wife and I have decided to rent our house out to good friends of ours, whilst we live in the family farm, running it till it gets sold.

We are using this time to overpay and save as much as possible.

Our mortgage is currently variable, 2.5%, repayment 550 a month on a 144k mortgage.

After reading this I informed chelt and Gloucester informing them of the situation, and they stated I will loose my variable, go to fixed and my mortgage will rise to 900 a month. I will also not be able to return to the fixed once I move back home.

With our tenants to be, we have agreed 575 PCM plus bills. So basically they are paying our mortgage to us.

Clearly we don't want to make a loss during this time, so then told the mortgage company I won't rent it out.

If ll and tenants are happy, mortgage company still gets paid I can't see how there is a problem?
What can legally happen if the mortgage firm find out somehow tenants are in?

Regards In advance.