Permission to Let - Fees

zafonickitty

My first post - so apologies if I make a mistake.

We are needing to live abroad for a year or more to care for my husbands parents, Scottish Widows Bank have given us Permission to Let, but insist on charging us £450 for the agreement for 1 year only. After this they say that we need to revert to a Buy to Let Mortgage or apply for a further 1 year permission at another £450.

This seems excessive given that our mortgage is only 45K - and when i asked them what it paid for they said it reflected the added risk they were carrying!!! what a joke - of course they also stated it was in the Mortgage Terms and Conditions.

I recall paying HSBC £100 for Permission 5 years ago which seemed reasonable.

Any thoughts?? Should I challenge this fee??

_Andy_

Why do you feel it is a 'joke'? They don't have to agree consent to let at all.
What HSBC did or does charge isn't relevant.
Nothing to challenge..

Wutang_2

zafonickitty wrote: »

what a joke - of course they also stated it was in the Mortgage Terms and Conditions.

Should I challenge this fee??

If it was in the T&Cs then how come its a joke and what are you challenging??

herbiesjp

You could always leave Scottish Widows and go onto a BTL

dunstonh

This seems excessive given that our mortgage is only 45K - and when i asked them what it paid for they said it reflected the added risk they were carrying!!! what a joke - of course they also stated it was in the Mortgage Terms and Conditions.

You bought a residential mortgage. You now want a commercial mortgage. You are breaking the contract and Scot Wid have given their price to accept your revised terms. If you dont like it then you are free to move your borrowing to another commercial mortgage.

I recall paying HSBC £100 for Permission 5 years ago which seemed reasonable.

What has that got to do with anything? You can buy a tin of baked beans in Harrods for 50% more than you pay in Adsa. It doesnt make it unfair. Both choose how much they wish to retail their product for.

Should I challenge this fee??

You dont have strong grounds and Scot Wid could withdraw their offer and refuse to allow you to let it. Many lenders will not allow you to switch to commericial terms.

The fee isnt just for covering admin. It is also to cover the increased risk of failure.