Alliance & Leicester Plus Mortgage Letting of Property

h63298

Of course will let you know!!

What are you planning on doing. Im tempted to just let without consent if they are stupid enough not to give it!!

My argument is that I cant see where in any terms and conditions it states this. They need to put into writing why they will not allow this and where in the terms and conditions it states this. Its pointless them doing this. me personally will end up leaving them in September due to this and therefore they are losing custom.

Their mortgage will still be paid!

Does anyone know if this is something people do - renting without the mortgage co's permission?

Thanks

skint_chick

People do let without their lender's permission BUT and this is a big but you need to have specialist landlord's insurance to rent out a property - to cover your liability in case something happens to injure the tenant - for example the chimney falls on their head when they're leaving the house in the morning, storm causes part of the roof to fall in, fire burns house down etc etc. If you don't have consent to let this insurance is invalid and you are leaving yourself open to being sued by your tenant and mortgage lender. It's a requirement of your mortgage to have valid buildings insurance in place regardless of whether "the payments would be made if it was rented"

It's quite common for lenders not to allow consent to let if they feel there is not sufficient equity in the property. If you were told on the phone that you could let the property then it's worth asking for a transcript of the call to find out if you/they were specific enough - if you rang them on a generic "Can my property be rented out?" query it's different to a "Here's my mortgage acount number, details etc, can I rent my property out starting next month please?"

feisty1

h63298 wrote: »

What are you planning on doing. Im tempted to just let without consent if they are stupid enough not to give it!!
Does anyone know if this is something people do - renting without the mortgage co's permission? Thanks

If "yr stupid enough to let without permission" be prepared the lender can take legal action against you and seek foreclosure............

feisty1

h63298 wrote: »

I have put this through the complaints process as a) I was told incorect information which I have acted on and b) I did not sign any T&C where it states you cannot let the property out. I dont know what my legal rights are? does anyone know?? but if its not in the T&C that you signed I cant see how they refuse. Thanks

You have a residential mortgage not an investment mortgage, yr t&c's (as does everybody's) states you will reside at that address.......you have signed t&c's simply because it is A&L's money you have borrowed therfore you have to abide by their conditions............

h63298

Thank you for your advice

Well no there is no equity in the house its in negative equity which is why i need to rent as I need to get saving for a house and we cannot save a deposit while paying the mortgage.

It was definately a specific enquiry with them. They have the records that they informed me I could take this out. I had given them my account details. This happended twice in fact the second time I had arranged payment and then the retracted at the last minute as I had kept them on the phone probing them to make sure I was covered on every angle. This is when they realised their mistake.

My argument with them it is it is not in the T&C which I signed and therefore I cant see why I cant rent the property otu. I can still cover my mortgage payments.

Thank you for the advise re buildings insurance - I did not realise this would be invalid without the mortgage lenders consent. I need to hope I can get this otherwise im pretty much stuck with my property and may be better off selling upa nd losing the difference

andymwh1972

Apologies for being a bit late on this. I have an interest only mortgage with Alliance and Leicester for a property which is in negative equity. 3 of us live in a 1 bed flat which is not ideal. We intend to rent our flat out and rent a bigger property until the market picks up and we can sell. I telephoned A and L on 0800 092 3881 and asked their permission to let. This was not a problem. Permission was given over the phone. There is an annual fee of £95 which is added to the mortgage payments. It has all been sorted and we are awaiting the paperwork. There was no need to take out a buy to let mortgage.