Consent to let issue, please read help needed badly!

RubyWednesday

Right, I think I might be in big trouble and I could do with some advice.

Here is the story I will try to keep it brief. In 2006 I bought a house, using a (what I now know is horrendous) Northern Rock Together mortgage. I now know that it's really bad but I was 22 and looking back I was really badly advised, I didn't know what I was doing and if I could turn back the clock I would! My house was a one bedroom end terrace that's lovely and in a good area but in 2009 I became pregnant and realised when I was about 8 months along in a panic that the house was no-way big enough for my new family (baby, partner and me) and decided I needed to move out. I found a house that was loads bigger that I could rent for less than my mortgage so I moved in. I rented out my house to really stable tenants - early retirement, unblemished credit history, want to be there long term and have never missed a payment. I now know that I should have got consent to let but I was worried that NR would refuse as I am in negative equity. At the time being pretty close to giving birth I just wanted to move out and so just let my tenants move in.

A year and a bit later I've never missed a payment, my tenants are happy but it's been playing on my mind and I want to come clean to NRAM about what's happened. I've never made a profit on my rent (the rent I recieve is lots less than the mortgage).

So now I'm worrying, if I come clean what will happen? I have thought about writing a letter to NRAM detailing what has happened and asking for consent to let etc but I am worrying, can they take me to court? Have I done something illegal? Or will they hit me with a big fine?

I'm financially stable (more or less) now, have a good job but if they tell me my tenants have to move out then I'll not be able to afford the mortgage and it'll need repossessing which I don't want to happen.

It's in a sought after area and I want to keep the house and rent it out - it'll pretty much always be rented easily as it is about the rental price of a nice 1 bed flat but has a drive and garden, plus is lovely inside.

Can anyone advise me as to what I can do? I'm freaking out a bit! I know I've been stupid but given the circumstances when I moved out I wasn't really thinking straight

[Deleted User]

Hi,

I know you want it sorted out, but I don't think NR need to know the history.

Just tell NR that with the wee one now you need a bigger house and want to know the ins and outs of letting out your own place.

RubyWednesday

[Deleted User] wrote:

Hi,

I know you want it sorted out, but I don't think NR need to know the history.

Just tell NR that with the wee one now you need a bigger house and want to know the ins and outs of letting out your own place.

Thanks for the reply but what about it being rented out for over a year? They have asked for proof of rental value, and my letting agent have sent me a letter saying it makes X amount and has done since 2009:eek::o

somethingcorporate

Ask them to resend the letter without the detail about when it was rented out from?

RubyWednesday

somethingcorporate wrote: »

Ask them to resend the letter without the detail about when it was rented out from?

I thought about that but wouldn't they just get a bit suspiscious?

getmore4less

RubyWednesday wrote: »

I thought about that but wouldn't they just get a bit suspiscious?

your letting agent won't care.


More important have you changed the insurance?

RubyWednesday

getmore4less wrote: »

your letting agent won't care.


More important have you changed the insurance?

Yes, I've always had landlord insurance.

Are you sure they won't care? I'm just worried that they'll say I can't carry on renting it out, although I suppose then they'd lose their monthly money. I may call them and ask them to resend.

Alter_ego

Ask another agent to assess rental value.

RubyWednesday

Alter_ego wrote: »

Ask another agent to assess rental value.

That's an idea but wouldn't they need to go round?

Also I'm starting to think that I should just play dumb really, and say that it's been rented out and I didn't think, which I didn't really!

Could they hit me with a big fee for not telling them?

Gorgeous_George

Be careful about the tax situation. It is not enough to say 'I've never made a profit on my rent (the rent I recieve is lots less than the mortgage)'. You need to pay tax on rental income less any allowable expenses. These include the interest on your mortgage but not the whole of a repayment mortgage.

Given the situation, I'd probably not bother telling NRAM. Consent to Let is unlikely to be approved long term and you may not be able to secure a BTL mortgage without significant equity. Forced to sell at a loss helps nobody but NRAM will only be able to spout the party line. and I wouldn't worry about it while your tenants are paying. Maybe you could move back in but rent them a room to your tenants and never stay at the property yourself.

GG

Thrugelmir

RubyWednesday wrote: »

Yes, I've always had landlord insurance.

Are you sure they won't care? I'm just worried that they'll say I can't carry on renting it out, although I suppose then they'd lose their monthly money. I may call them and ask them to resend.

Letting without consent invalidates the insurance cover. If a claim was to be investigated.........