Consent to let denied by RBS

fosters25

Just wondered if anyone had an experience with RBS on obtaining a consent to let? Have been carrying an empty house now for 7 months as I have relocated overseas afetr being laid off, but do not want to sell. Finally have a tenant due to move in in 3 weeks and have been trying to obtain Consent to Let from RBS.

After numerous letters got everything lined up. However missed mortgage payment second request by 2 days in february as didn't transfer from overseas fast enough. Called and got it paid directly after 3 days when funds arrived in UK.

Now they send a note saying they will not give consent to lease until I have 3 months payments at first request!! This will not help get tenant (I may lose them), and will not help me keep up payments (although I will)

I cannot understand stupidity of this position. I have sent a polite but pressing letter asking for a reconsideration, but have little time to resolve this before tenant walks.

Do I have any legal rights? What if, in worst case scenario, tenant moves in for a while without it? Does he lose certain rights? Do I?

I already have landlord insurance.

Any help or advice most appreciated.

PasturesNew

Who is managing the property in the UK? Is the tenant known to you or did you advertise or did a lettings agent find them?

fosters25

property is managed by a local letting agent, who has also rented the property. The tenant is not known to me but is from a reputable corporation. company will be paying rent.

poppysarah

Does your landlord insurance rely on you having permission to let?

fosters25

I don't think so. They just asked if I was renting it as I recall.

poppysarah

Have you considered selling this property you can't let and don't want to live in?

fosters25

Yes. But it is in a good position to rent, in a good neighbourhood and near schools. The normal market in the area is excellent and if it had not been for the perfect storm of credit crunch, many new homes coming on market due to inabilty to sell and dearth of relocating tenants from US, it would have rented some months ago. I definitely want to rent and believe it will rent well in furture and let me get back into market if I need to.

poppysarah

It's not in a good position to rent if you can't get permission to let on your current mortgage.

fosters25

I understand that. I guess my question is do I have recourse with RBS? If i decide I need to sell and take a 25% hit on what I might be able to get in 2-3 years time, I can do so I suppose. It would also take a minimum of an additional 4 months to sell I think.

At this point i don't want to reevaluate my selling or renting option but would like to do what I can to place the tenant i do have.

Do you have any thoughts on consent to let issue?

pinkshoes

fosters25 wrote: »

Now they send a note saying they will not give consent to lease until I have 3 months payments at first request!!

So... borrow some money from somewhere (bank/relative/friend) and pay 3 months of mortgage payments to them, then you can go ahead with your tenant, and pay back the loan in 3 months (i.e. their rent payments).

Simples.

fosters25

Thank you pinkshoes. however, I did offer that remedy to the bank, who declined. They seem to want to have the monthly payments on time, nothing else. I do believe that the individuals one talks to have no authority to overrule what the department that posted the written response states, so maybe my letter will elicit a useful response.