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

fordy

Since its a few years since this thread started, is the situation still the same?

Is it any easier as a potential tenant to find out if the owner of the property has the legal right to let?

Is it not the responsibility of the letting agent to know this before attempting to let the property?

If the landlord is currently living in the flat is it not likely that they don't have permission?

A lot of questions I know, but I was at a viewing last night and it left me worried.

MissMoneypenny

mchale wrote: »

OP I'd be more worried if property was burnt down and insurance company found out you had not informed lender it was rented out, that could be a BIG can of worms

silvercar wrote: »

That was discussed on another thread:

https://forums.moneysavingexpert.com/discussion/3686659

post 55:

silvercar wrote: »

From my property renewal form:

"MATERIAL FACTS It is essential that you disclose all material facts at renewal, ie any fact which could influence an insurer's assessment of the risk. If you are in doubt about whether a fact is material please contact us [the broker] for guidance."

In the policy document:
There is a section headed "change of circumstances" with a list of changes that would require notification, but none of them relate to the mortgage.

In fact I can't find any mention of a mortgage in the documents other than "3rd parties noted to have an interest: [name of lender]"

If anyone wants to read the whole policy it is here:

http://www.mma-insurance.com/a/pdf/ResidentialPropertyOwners_Wording.pdf

I just replied to that thread as that firms claims department have just told me that the claim would fall fowl if there was a fire and the landlord didn't have consent to let. Plus your link was to their residential property insurance and landlords need a commercial insurance (they confirmed that too).

silvercar

MissMoneypenny wrote: »

I just replied to that thread as that firms claims department have just told me that the claim would fall fowl if there was a fire and the landlord didn't have consent to let. Plus your link was to their residential property insurance and landlords need a commercial insurance (they confirmed that too).

Well that is wrong as that link is from my broker, whose policy I have. The policy is a policy for tenanted properties that the broker has put together for his landlord clients. It even has sections that pay out for loss of rent etc.

As you say never believe anything posted on the internet.

silvercar

fordy wrote: »

Since its a few years since this thread started, is the situation still the same?

Is it any easier as a potential tenant to find out if the owner of the property has the legal right to let?

Is it not the responsibility of the letting agent to know this before attempting to let the property?

If the landlord is currently living in the flat is it not likely that they don't have permission?

A lot of questions I know, but I was at a viewing last night and it left me worried.

Download the deeds and see if the landlord's address is different to the property address. Though this only applies if the landlord bought the property as a BTL. It would however show you if the landlord has a mortgage.

If the landlord is currently living in the property you could ask for evidence that they have CTL, though they may not obtain it in writing until they have a tenant.

tbs624

Extract from guidance for mortgagees with Northern Rock, just as an example:

Letting application guidance notes
Under the terms and conditions of your mortgage, you must obtain our formal written consent prior to letting your property. We are not obliged to give our consent to you letting your property out. If we refuse our consent and you still let your property out you will be in breach of your mortgage conditions and we reserve our right to pursue the remedies available to us which could include repossession.
Consent to Let application forms must be signed by all parties named on the mortgage account. Please read this document carefully before submitting your application.

Letting criteria
Northern Rock will consider your request subject to the following criteria:
n The mortgage has not completed, or been through a mortgage review within the last six months.
n The mortgage is not subject to a Guarantor.
n You do not currently have a Lifetime Mortgage.
n The letting arrangement is self-financing i.e. the rental income is sufficient to cover 120% of the mortgage repayment on an interest only basis including any unsecured loan.
n The tenancy is arranged on an Assured Shorthold basis or, in the case of properties in Scotland, a Shorthold Assured basis. Properties in Northern Ireland must be arranged on an uncontrolled tenancy agreement. Your managing agent should be able to supply you with a suitable tenancy agreement.
n The term specified in the agreement must not exceed 12 months and all parties to the loan should be named as landlords. We cannot accept any other form of tenancy such as lodgers or holiday lets.
n The request is not for any form of holiday let, bed and breakfast, guesthouse or to let out part of the secured
property such as an annexe or cottage within the grounds.
n The request is not to let to local Councils/Authorities or Housing Associations.
n The loan to value of the mortgage does not exceed 70% (including any unsecured loan). This can be calculated using ‘the outstanding balance of the mortgage account divided by the current value of the property (%)’.

My bolding. If C&G has similar terms (& most lenders do) Rallan1984 would clearly not be considered for CTL

fordy

silvercar wrote: »

If the landlord is currently living in the property you could ask for evidence that they have CTL, though they may not obtain it in writing until they have a tenant.

The owner/Landlord is currently living at the flat, I had hoped the LA who showed us (and the 4 other couples around!) would have sorted this out, isn't it the LA's responsibility to make sure BEFORE they go ahead and let it?

MissMoneypenny

silvercar wrote: »

Well that is wrong as that link is from my broker, whose policy I have. The policy is a policy for tenanted properties that the broker has put together for his landlord clients. It even has sections that pay out for loss of rent etc.

As you say never believe anything posted on the internet.

You might want to check the link you posted as it comes up as Residentiall Property Owners policy. It even states ResidentialPropertyOwners in the link your gave.

silvercar wrote: »

From my property renewal form:

SNIP

If anyone wants to read the whole policy it is here:

http://www.mma-insurance.com/a/pdf/ResidentialPropertyOwners_Wording.pdf

fordy

by download the deeds, do you mean from landregistry.gov.uk?

MissMoneypenny

fordy wrote: »

The owner/Landlord is currently living at the flat, I had hoped the LA who showed us (and the 4 other couples around!) would have sorted this out, isn't it the LA's responsibility to make sure BEFORE they go ahead and let it?

Yes, they should obtain Consent to Let before the property is rented.

If it is a Buy to Let mortgage then the landlord should not be living in the property, so it might be a waste of your £4 for you to visit the Land Registry site to download the deeds.

The landlord should have consent to let and any decent letting agency would have asked for proof of this before the put the property on their books.

silvercar

MissMoneypenny wrote: »

You might want to check the link you posted as it comes up as Residentiall Property Owners policy. It even states ResidentialPropertyOwners in the link your gave.

It is for owners of residential property, landlords do own residential property.

if you scroll down to p14 it includes cover for malicious damage by tenants:

Where loss or damage is caused by legal
tenants or guests the most we will pay is
£5,000 less any amount recoverable from any
security deposit lodged by the tenant.

and page 16:

Temporary Accommodation and Loss of Rent
If your property is uninhabitable due to
damage insured by this section we will pay for:
• the reasonable extra cost of similar
temporary accommodation for the tenant;
or
• rent which should have been paid to you;
until the property is fit for habitation again

and definite proof that it is for landlords on p18:
21. Property Owners Liability
We will indemnify you in respect of your legal
liability:
(a) as owner but not occupier of the
buildings and their land;