Checking for permission to let

9wizard9

After reading lots of advice and horror stories on here I thought I'd try to do the sensible thing and check out the status of a house that I'm probably looking to rent.

I downloaded the register from the Land Registry to check out the address of the owner and whether there was a mortgage on the property.

I just wanted to check whether I'm interpreting the document correctly, and whether there's anything else I need to check out - I was hoping some of the more experienced people on here might be able to help out.

The extract on the front of the document states:

Registered Owner(s): Mr and Mrs X of another address that is fairly local

Lender(s): None


The way I'm reading this, it means that they own the house outright with no mortgage. I can't see anything in the Charges Register section that mentions a current mortgage either, so as far as I understand it I don't need to worry about permission to let and repossession and suchlike.

Is this the case, or are there more questions I need to be asking about this before committing to the tenancy?

silvercar

Looks correct. As they have registered that they live elsewhere, it appears that they bought the place with no intention of living in it themselves or have kept the land registry upto date of their movements.

If there is no charge then there is no mortgage.

Of course things could change in the future and at present Mr & Mrs X could have given personal guarantees or taken unsecured loans out. All of which could lead to insolvency or bankruptcy or charges being put on the property and could lead to them losing their property. Nothing guaranteed.

In answer to your specific question, there would be no permission to let needed.

9wizard9

silvercar wrote: »

Of course things could change in the future and at present Mr & Mrs X could have given personal guarantees or taken unsecured loans out. All of which could lead to insolvency or bankruptcy or charges being put on the property and could lead to them losing their property. Nothing guaranteed.

Thanks for the reply silvercar.

I'd not really thought about other loans and suchlike, but presumably there's not a lot I can do to protect myself against that is there? Would any unsecured loans or guarantees have the same potential for eviction by bailifs though? I'd have hoped the rights under the AST would still mean we were protected against eviction even if Mr and Mrs X default on other loans or guarantees?

silvercar

Short of credit checking the landlord, which I doubt they would agree to, the only option you have is to ensure that any mortgage on the property would acknowledge your rights. As there is no mortgage, you are not at risk of a lender appearing out of the blue and repossessing the property.

Supposedly unsecured lenders and guarantees could apply to the courts to sieze assets; there would be no obligation to comply with a tenancy agreement as the lender is not party to any contract between landlord and tenant.

In practical terms, there is little point worrying as you have covered all the options open to you. You know your landlord has registered with Land Registry that they live elsewhere and there is currently no mortgage on the property. It is a good position to be in and really you couldn't ask for more.

9wizard9

Bit of an update on this...

We lost the previous house as someone else got there before we did (bah).

However, we've now found and been accepted for another one. Again there doesn't appear to be a lender, but in this case the owner is still registered at the address according to Land Registry.

The owner is currently abroad, so probably just didn't think to let Land Registry know they were no longer in the house.

Does this matter particularly from a tenant's point of view, given that there is no lender registered against the property?

silvercar

It may be that the owner doesn't have a fixed address as yet.

It only matters in that someone could serve notice on the property for the landlord, but they could probably do that anyway.

The basic rule is that with no charges on the property, a creditor can't go to court and take possession of the property in a short timescale. It makes your position as a tenant relatively safe. I say "relatively" as things can change and basically you are living in a property owned by someone else and so there is always a risk.

franklee

9wizard9 wrote: »

However, we've now found and been accepted for another one. Again there doesn't appear to be a lender, but in this case the owner is still registered at the address according to Land Registry.

The owner is currently abroad, so probably just didn't think to let Land Registry know they were no longer in the house.

Does this matter particularly from a tenant's point of view, given that there is no lender registered against the property?

So long as you are paying rent to a UK agent (could be a usual letting agent or someone like a friend the landlord has appointed) and not to the landlord you should be fine. If paying rent directly to a landlord currently abroad then do check out the non resident's landlord scheme to make sure you have no liability for any tax on the rent:

http://www.hmrc.gov.uk/CNR/nr_landlords.htm

Also if the landlord is abroad make sure you have a UK address for him for service of notices, again this can be the agent. Also make sure you know how repairs are to be done, again an agent is usful to have for a landlord who is away,

As for the above comments about loans etc. I'd not worry as someone who owns a property outright is unlikely to go under with debts any time soon and if the loans were taken out after the tenancy started then the tenancy would likely have priority. Just like it does when there is no consent to let on a residential mortgage, the tenancy is binding on the lender if the tenancy predated the loan as can happen if the landlord has remortgaged.

franklee

A tenant on an AST doens't get much security of tenure so for a landlord currently abroad who used to live in the property to be let I'd be wanting to know how long the landlord intends the let to be available, will he want to return from abroad and live at the rental address again, if so when. Or is he planning to sell, if so when. Check the tenancy agreement for any break clauses and keep an eye out for being served a Section 21 notice requiring possession.

MissMoneypenny

On a good note, you may find that the house is in a good state of repair if the landlord use to live in it.

financegirl

9wizard9 wrote: »

After reading lots of advice and horror stories on here I thought I'd try to do the sensible thing and check out the status of a house that I'm probably looking to rent.

I downloaded the register from the Land Registry to check out the address of the owner and whether there was a mortgage on the property.

I just wanted to check whether I'm interpreting the document correctly, and whether there's anything else I need to check out - I was hoping some of the more experienced people on here might be able to help out.

The extract on the front of the document states:

Registered Owner(s): Mr and Mrs X of another address that is fairly local

Lender(s): None


The way I'm reading this, it means that they own the house outright with no mortgage. I can't see anything in the Charges Register section that mentions a current mortgage either, so as far as I understand it I don't need to worry about permission to let and repossession and suchlike.

Is this the case, or are there more questions I need to be asking about this before committing to the tenancy?

Hi,

I'd like to do this for the house I'm about to start renting with my boyfriend. I've gone onto Land Registy and it says it's £45.00 to download!!

Am I looking at the right bit - surely you didn't pay that??

thanks
fg

franklee

It used to be three quid, but in these days of high inflation it may be a bit more now, maybe six, I forget