Consent to Let

jonathanrichardson69

hi all, just wondering does anyone no anything about mortgages? and buy to lets? i currently own an aparmtent and want to let it out, and move to another place. the mortgage lender that i will be using for the new place said i have an excellent credit score and therefore they don't even need proof of earnings, very strange in this time of credit crunch. however, i've been told i need to make sure i have a letter of consent from my mortgage company that i have my flat from. what happens if i don;t get permission? should i just do it anyway? what are the risks? any advise would be great. only reason i want to Let is because it won't sell to recover the loan value

silvercar

Who asked you for consent to let? Prospective tenants, the letting agency or the lender of the new mortgage?

The new mortgage lender will want to know that the rental income will cover the mortgage on your current home. Otherwise they will calculate your new lending based on some of your income funding the old mortgage, which could limit the amount lent.

Comyface

If you don't get permission, you'll be in breach of your mortgage conditions and the lender could repossess. Granted, that's a worst case scenario and begs the question 'how would they know?' etc, but that's the answer (and the risk you take if you don't get permission).

Who's your mortgage with? Maybe someone on here has CTL experience with your lender and could give you an idea about whether it's easy to get consent off them.

jonathanrichardson69

silvercar wrote: »

Who asked you for consent to let? Prospective tenants, the letting agency or the lender of the new mortgage?

The new mortgage lender will want to know that the rental income will cover the mortgage on your current home. Otherwise they will calculate your new lending based on some of your income funding the old mortgage, which could limit the amount lent.

the new mortgage company said i need to get consent to let my existing place. its a new apartment. i also pay management fees to a company called Peverel OM. the management company pays my buildings insurance for me. i have heard, that if i do not have consent, my buildings insurance is invalid. and the mortgage company could also take out a civil law suit against me as the mortgage is no longer a residential mortgage

jonathanrichardson69

Comyface wrote: »

If you don't get permission, you'll be in breach of your mortgage conditions and the lender could repossess. Granted, that's a worst case scenario and begs the question 'how would they know?' etc, but that's the answer (and the risk you take if you don't get permission).

Who's your mortgage with? Maybe someone on here has CTL experience with your lender and could give you an idea about whether it's easy to get consent off them.

my lender is first national or GE money as i believe they are also known