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What are the implications of renting without mortage company's permission?

Loola_uk
Posts: 1 Newbie
Hi All
My partner and I brought our first property (a 2 bedroom flat) just over 2 years ago. We put down a £10,000 deposit but also had to borrow £30,000 from our mortgage company to consolidate outstanding debts. this loan is not secured against our property.
Both of our jobs have been relocated to Dorset and we want to rent out our flat and move so we can keep our jobs. We are in no position to sell as our flat is worth nothing compared to what we paid for it at the moment.
We have contacted our mortgage company and explained the situation however they have advised that we are unable to rent out our flat until we have more equity on the property or reduce our loan which we are unable to do.
We have contacted the rental company to find out how to go about renting our flat and they have advised that they do not need to see any mortgage documents if we want to rent out our property. All, we need to do is sign a document to say that we have the correct mortgage in place to rent our property.
my question is, what would be the implications if our mortgage company found out that we had rented out our property without their permission?
As you can see we are in a difficult position, we either keep our flat but lose our jobs so we can't pay our mortgage anyway or keep our jobs and rent out our flat secretly and the mortgage is continuing to be paid.
any help would be really appreciated.
thanks
My partner and I brought our first property (a 2 bedroom flat) just over 2 years ago. We put down a £10,000 deposit but also had to borrow £30,000 from our mortgage company to consolidate outstanding debts. this loan is not secured against our property.
Both of our jobs have been relocated to Dorset and we want to rent out our flat and move so we can keep our jobs. We are in no position to sell as our flat is worth nothing compared to what we paid for it at the moment.
We have contacted our mortgage company and explained the situation however they have advised that we are unable to rent out our flat until we have more equity on the property or reduce our loan which we are unable to do.
We have contacted the rental company to find out how to go about renting our flat and they have advised that they do not need to see any mortgage documents if we want to rent out our property. All, we need to do is sign a document to say that we have the correct mortgage in place to rent our property.
my question is, what would be the implications if our mortgage company found out that we had rented out our property without their permission?
As you can see we are in a difficult position, we either keep our flat but lose our jobs so we can't pay our mortgage anyway or keep our jobs and rent out our flat secretly and the mortgage is continuing to be paid.
any help would be really appreciated.
thanks
0
Comments
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Invalidate your insurance for a start. Do not even consider it!0
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They could immediately demand you repay the mortgage in full within 7 days.0
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Hi All
My partner and I brought our first property (a 2 bedroom flat) just over 2 years ago. We put down a £10,000 deposit but also had to borrow £30,000 from our mortgage company to consolidate outstanding debts. this loan is not secured against our property.
Both of our jobs have been relocated to Dorset and we want to rent out our flat and move so we can keep our jobs. We are in no position to sell as our flat is worth nothing compared to what we paid for it at the moment.
We have contacted our mortgage company and explained the situation however they have advised that we are unable to rent out our flat until we have more equity on the property or reduce our loan which we are unable to do.
We have contacted the rental company to find out how to go about renting our flat and they have advised that they do not need to see any mortgage documents if we want to rent out our property. All, we need to do is sign a document to say that we have the correct mortgage in place to rent our property.
my question is, what would be the implications if our mortgage company found out that we had rented out our property without their permission?
As you can see we are in a difficult position, we either keep our flat but lose our jobs so we can't pay our mortgage anyway or keep our jobs and rent out our flat secretly and the mortgage is continuing to be paid.
any help would be really appreciated.
thanks
Also renting without consent to let undermines the security the tenant has should the landlord get repossessed, which in your case looks likely. We have a whole sticky thread on the subject here:
http://forums.moneysavingexpert.com/showthread.html?t=1377883
As you can see at least someone is trying to do something about this dodgy practise:
http://forums.moneysavingexpert.com/showpost.html?p=29101755&postcount=2670 -
We have a whole sticky thread on the subject here:
http://forums.moneysavingexpert.com/showthread.html?t=1377883
As you can see at least someone is trying to do something about this dodgy practise:
http://forums.moneysavingexpert.com/showpost.html?p=29101755&postcount=267
And a recent discussion. http://forums.moneysavingexpert.com/showthread.html?t=2226201Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Suggest you seek advice on the debt forum.As you can see we are in a difficult position, we either keep our flat but lose our jobs so we can't pay our mortgage anyway or keep our jobs and rent out our flat secretly and the mortgage is continuing to be paid.
Face the reality of your situation. Taking such a risk could have severe repercussions.0 -
THe bottom line is whether you can cast iron guarantee that you can keep up with repayments on your mortgage. If you don't you will be liable to the mortgage company and should they repossess then you also have a liability to your tenants. So it could cost you a lot more than losing your home.
If you can't afford to do it then don't.
Insurance isn't an issue as your buildings insurance will be included in the service charge for the flat.
Nobody has got repossessed AFAIK, or required to repay their mortgage, for letting without consent, but you do risk the lender increasing your rate if they find out.
Make sure you have the correct gas certificates and deposit protection etc...
You will also need consent to sub-let from the freeholders of your flat.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Another reason why you should open other peoples mail that comes through your door!!!!!! We opened our landladies mail and found out her mortgage lender doesn't know the property is rented. I didn't know you could be evicted without notice and am very worried now0
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No you should NO rifle through your landlord's private papers, how would you feel if the landlord opened your mail? You should check whether there is consent to lease before you rent the property and/ or question the landlord why you are getting any of their mail.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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No you should NO rifle through your landlord's private papers, how would you feel if the landlord opened your mail? You should check whether there is consent to lease before you rent the property and/ or question the landlord why you are getting any of their mail.
How would I feel if they opened my mail? They couldn't because I don't have my mail going to a different property.
Had I known to check that my landlord had consent to lease before I rented I wouldn't have rented where I am now :mad: I happened to discover she wasn't telling them because I was constantly passing letters to her that came to my house. (in excess of 15 over a period of 2 months). Then I got FED UP. So I started to open them and find out what was going on. I am glad I did as I am now looking for somewhere else to live, so get off your high horse fire fox and stop repremanding people for taking things into their own hands to prevent being chucked out of their house!0 -
If you want to nose through others mail, crack on: don't advise others to do so on a public forum and I won't have a reason to comment. You didn't open the post in order to prevent yourself getting chucked out as you didn't know what the letter contained until you opened it, did you?Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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