permission to rent

julie74d

We haven't got permission from our mortgage company yet but are in the process of renting. If they do give us permission then they say we can't rent to dss. We have had a few viewings but they are all dss, can't seem to find private tenants! A little confused what to do for the best. Try and get permission and still rent to dss or if they deny us do we still carry on.??

BitterAndTwisted

If you let without your lender's consent you will be breaking the conditions of your mortgage.
If you let with consent but to DSS/HB/LHA tenants you will be breaking the conditions of your mortgage.

Are you aware of what the consequences might be by breaking the terms of your mortgage?

silvercar

How are you meant to know if your tenants claim LHA if they still pay you the rent directly? What happens to tenants who lose their job mid term? That would invalidate your CTL in theory, but you couldn't evict on those grounds. Sounds like an unworkable term to me.

Check carefully as most lenders are happy if the tenancy is under an AST, however the tenants get their rent money. I suspect they will either give you permission or they won't, rather than stipulate who you can or cannot rent to.

tbs624

MadnessOfHPC wrote: »

A slap on the back of the hand and told to sit on the naughty step for one hour. Seriously no one checks into these things and the consequences are nil.

Except to a hapless T who gets unceremoniously booted out when the LL defaults on the mortgage and the mortgagor won't recognise the tenancy agreement or the LL , when there is something for which he needs to claim on his insurance and th einsurance company says "tenant?"

There will be a renewed wave of interest in the issue when the Mortgage Repossessions (Protection of Tenants etc) Act 2010 comes in to play next month. More Ts will be asking for written evidence that their LL does indeed own the property outright, have a BTL mortgage or a CTL in place.

OP - you will be declaring your rental income to HMRC won't you?

Gas safety cert done, EPC shown to Ts and so on?

Bear in mind too that renting without CTL gives your Ts something to hold over your head if you let them down over repairs etc.

Banks need to show that they are being responsible in their lending:there is a greater risk with tenanted properties and mortgagors need to show that they are adequately covering those risks. Amateur LLs who think that no-one is capable of cross referencing the numerous databases are fools.