Do I get consent to let from lender to rent out my house?

tbs624

clutton wrote: »

silvercar you are bashing your head against a brick wall on this one... as am i .... a few folks on here are utterly determined that their way of looking at CTL is the only way... and are unwilling to even enter basic discussion on it.... much of these scaremongering tactics are speculative... as you say there is NO case law where a Lender has repossessed due to lack of CTL..... all that would happen is that the borrower would be moved to a higher interest rate.... which is why some LLs prefer to take the risk....

LLs cannot simply pick which laws and regulations they think apply to them and their personal situation, and ignore the ones that they may not like.

You are also totally failing to acknowledge the distress caused to those Ts who find themselves booted out of their rented home, with very little notice, because the LL has not met his/her mg payments & failed to seek CTL or arrange BTL financing, so the lender will not acknowledge the tenancy.

clutton wrote: »

it is Everything to do with greedy lenders.... a very short while ago the Halifax, as but one example, were charging people up to £5k to switch from a residential to a BTL product... and for some folks who - eg. had been relocated for their job - they simply did not have that sort of money.... which is why some "accidental" landlords did not get CTL - Halifax has revised its charges downwards subsequently......

I would say that much of it is to do with the higher risks associated with people who are (a) already strapped for cash so may not have a contingency fund should the T default on rent and (b) intending to be amateur LLs but who know little about the PRS and what is involved.

When you quote these figures and examples in your posts Clutton, please slap up a source for them

FraudBuster

I don't understand what the arguement is about.

The OP asked:

Do I get consent to let from lender to rent out my house?

The reply is:

Yes.

puddy

but the op already said that he knows the answer will be no, and now he wants to know how to continue with his plan

op - are you earning money in hong kong which means you can cover the mortgage?
are your friends/tenants moving out of their own home, or dont they have a home at the moment?
would you be doing this on an AST?

silvercar

clutton wrote: »

silvercar you are bashing your head against a brick wall on this one... as am i .... a few folks on here are utterly determined that their way of looking at CTL is the only way... and are unwilling to even enter basic discussion on it.... much of these scaremongering tactics are speculative... as you say there is NO case law where a Lender has repossessed due to lack of CTL..... all that would happen is that the borrower would be moved to a higher interest rate.... which is why some LLs prefer to take the risk....

it is Everything to do with greedy lenders.... a very short while ago the Halifax, as but one example, were charging people up to £5k to switch from a residential to a BTL product... and for some folks who - eg. had been relocated for their job - they simply did not have that sort of money.... which is why some "accidental" landlords did not get CTL - Halifax has revised its charges downwards subsequently......

and I know of lender's saying, we won't give you permission in writing, but just do it. As long as you pay the mortgage we [the lender] is not interested.

tbs624 wrote: »

Of course, by the time you come to claim on that insurance policy and discover that there is no cover for, say an injury to your T or his guests, you may well be ruing the day that you thought it okay to lie. When you come to take out any future insurance policy you do, of course, have to declare any fraudulent activity relating to other insurances you may have previously held.

Of course you need insurance that allows tenants, otherwise you cannot claim for injury to tenants. Isn't that stating the obvious?

The law due to be implemented late this autumn will mean that where your tenancy is recognised by your LLs mortgagor ( ie where there is CTL or BTL financing in place ) you will be entitled to a minimum of 2 months' notice should the LL default on his/her mortgage payments.

So all tenants will then get at least 2 months notice, making the difference that CTL makes even more limited.

tbs624 wrote: »

LLs cannot simply pick which laws and regulations they think apply to them and their personal situation, and ignore the ones that they may not like.

I agree, please tell me which law is broken when someone rents a property without consent.

MissMoneypenny

silvercar wrote: »

and I know of lender's saying, we won't give you permission in writing, but just do it. As long as you pay the mortgage we [the lender] is not interested.

Really???? When other lenders are raising the interest rate of borrowers who let their property without Consent to Let? Which lender was that?

tbs624

silvercar wrote: »

Of course you need insurance that allows tenants, otherwise you cannot claim for injury to tenants. Isn't that stating the obvious?

Yes, I absolutely agree that it is stating the obvious but clearly stating the obvious may be what is required when a post appears on a LL Zone thread by your doppelgänger, which says, as I quoted above,:

It is important to get the correct insurance, pick a company that provides insurance to owner occupiers rather than building.insurance.for.let.properties and the lender would be none the wiser.

Perhaps you could confirm whether those words were your own or there is , by huge coincidence , another LL with the user name Silvercar who doesn't agree with CTL being necessary for a Ts protection?

Please also confirm which OO insurance products would provide cover for Ts?

silvercar wrote: »

So all tenants will then get at least 2 months notice, making the difference that CTL makes even more limited.

I am not sure I understand your comment : could you clarify what you mean?





Tenants - always check that your LL (a) owns the property outright or (b) has a BTL mortgage or (c) has their mortgagor's Consent to Let.

When you are being asked to produce all your own personal information to the LL/LA , give the LL/LA a pre-drafted letter with the above options and ask them to delete accordingly and sign and date it.

tbs624

Silvercar wrote:

and I know of lender's saying, we won't give you permission in writing, but just do it. As long as you pay the mortgage we [the lender] is not interested.

MissMoneypenny wrote: »

Really???? When other lenders are raising the interest rate of borrowers who let their property without Consent to Let? Which lender was that?

It would be really helpful if posters could simply add a source for their assertions: there have been quite a few posts of late (edit:that ) contain assertions, figures, stories etc which, without a reliable reference/link, obviously amount to little more than hearsay.

zzzLazyDaisy

I realise this is does not answer the OP's question, but it may help to consider a different viewpoint.

I have friends abroad who I visit fairly regularly. When I am away a friend stays in my house and looks after my cat. It suits him because I live close to his place of work, and also my house is more comfortable and has more facilities (broadband, freesat, landline etc).

He doesn't pay me rent while he is in my house, and I wouldn't expect him to - the money I save on putting my cat into a cattery more than offsets any rent I might consider to be reasonable - but on my return he does give me a small contribution towards the utility bills, which is an expense he would have had wherever he lives.

NEH

Can i put across another point of view, we have just been evicted because a certain bank made a mistake with repayments and our landlord can't afford the new ones, so he has to sell to pay back the money he owes to the bank....I can only assume that if he isn't able to sell that the bank will repossess.

What would happen when you're in Hong Kong and your mortgage payments increase or they do find out you're renting out and change you to a buy to let mortgage and the payments increase so much you can't afford them, your tenant will then have the hassle of finding somewhere else to live...

We're fortunate that we found somewhere else to live, but because of a shortage of rental properties we had to move fast with viewings, thankfully husband was able to arrange this with his work but it is very stressful and when we finally move it will of been 3 months snce notice, we just weren't able to get somewhere with 2 months notice, so please keep in mind your tenant.

silvercar

Please explain what happens when consent to let (usually granted for a limited time) expires, but there is a tenant in situ?