Breach of Contract and squatters rights

homeliving

Breach of Contract and squatters rights

Mrs_Bumble

I believe that you can get a copy of the title on line at land registry,
https://www.landregistry.gov.uk/wps/portal/Property_Search

A lot of mortgage lenders do hold the deeds, but some have been giving them back to customers now that the title information is all online and they want to free up space.

Yes I would expect them to charge you to send information.

To let your property out you are in breach of the contract and you are supposed to request permission to let the property before letting it out, which they will charge you for and potentially increase the interest rate as you are effectively carrying out a business transaction by letting the property out, unless of course the person in the property is a close family relative?


Why did you let the property out?

Why do squatters rights come into it?

homeliving

Hi Thank you for the quick reply and your advice.

Can you advise re the garden issue - or was it a bit long winded (lol).

I rented it out because I moved into my partners house with him.

Obviously now I know I have breached the contract I will declare it officially, but what is likely to happen in this scenario?

Thank you :-)

homeliving

squatters rights - I was told that because I had had the garden as mine for such a long time, without question, and under the assurance it was/is mine that I am covered under squatters rights?

opinions4u

homeliving wrote: »

1,Is it normal for a mortgage company to hold onto your deeds?

Yes for mortgages taken out before 2003. Unusual for those after. But it will vary from lender to lender.

2, Is it normal for a mortgage company to charge for a copy of 'your' deeds?

Yes. Most companies charge for goods and services.

One difficulty may be that the information required isn't clear within the title deeds any way. You pay your fee, you get a copy of the information requested and it tells you nothing new.

Another option would be to arrange to inspect the title deeds in one of the lender's branches (if they have one). This would also be likely to involve a fee.

During the conversation, I 'let it slip' (as I was not aware I was doing anything wrong, and because I have mentioned it on other ocassions without being pulled up) that I was renting my property out, the guy got quite defensive and said I was in breach of contract for this??

If you have allowed a tenancy without the consent of the lender you are in breach of the mortgage conditions. They could, theoretically, move to repossess on this basis. More likely they will, if asked, charge a fee, issue consent and increase your interest rate.

Boundary disputes will, almost always, need you to involve a solicitor. The first port of call should be the solicitor who acted on your behalf when you bought the property.

They established title of the property at the time and may (or may not) have queried the boundary.

homeliving

Thank you.

I have just spoke to the Mortgage lender, in a panic, (I suffer from anxiety at the best of times!) because I would hate them to repossess my house. They have said they wont do this, but I need to see a mortgage advsier on Saturday who will discuss with me my options and also allow me to choose a new (rental?) interest rate, can you please advise how much this might cost me and the possible interest rate I might be paying. I only have £10,000 left on my mortgage. would it be an option to go elsewhere? (I have found most people have refused me, as I want to borrow less than £35K)

Thanks

Mrs_Bumble

Sounds like they are going to switch you to a buy to let product, who is the lender?

In relation to the boundary dispute, do you have access to a legal helpline through your buildings and contents insurance? Or you could try community legal advice http://www.communitylegaladvice.org.uk/ pick their brain!

never_enough

Have a look here, it may be of use.

http://www.gardenlaw.co.uk/boundaries.html

I have been charged up to £30 in the past for copies of deeds.

Many companies are not interested in such a low mortgage, it would be easier to stick with your current lender if you can & they're not going to hugely penalise you. Check if you can overpay to repay earlier, this may attract fees though, so get it in writing & stick to it.

I havn't let a property for a while, but you used to be able to offset the cost of the interest on a mortgage, plus an amount for the wear & tear of furniture against your tax liabilities. If it is still the case it may not be worth overpaying your mortgage.

If you don't have permission to let your property then your insurance will not be valid either. There are also a lot of safety requirements that landlords must adhere to, are you doing gas & electricity checks yearly? Your tenants have the right to see those certificates. I don't really follow things as I don't need to at present, but I'm sure that you're also required to hold tenants deposits in some kind of special account. Renting out a property is not just a case of collecting money each month, it brings many responsibilities nowaday.

never_enough

You can post a query here too & there's lots of helpful bods over there.

http://www.gardenlaw.co.uk/phpBB2/index.php

homeliving

Hi Guys, have just been to see mortgage adviser (halifax) and they want to charge me a wapping £999.00 fee to go over to buy to let mortgage on my outstanding balance of approx 11k.

Can anyone advise what they would do? Should I take out a loan instead (wont this sting me with the tax though?)

Should i try and get a buy to let mortgage elsewhere?

Thanks :-)

Mrs_Bumble

Is that the only product that they have available?

Problem that you will have is that some buy to let lenders don't want you converting a residential to a buy to let, for some you won't meet the minimum amount to lend, an official buy to let will also expect the rent to cover either 125% or 135% of the mortgage payment with the rental income, You will also have to fullfill minimum income criteria as well! Gets a bit complex.

What rate were they offering for that fee?