Consent to let issue, please read help needed badly!

barbiebird1

Hi,

I read your post as I am currently trying to get NRAM to give consent to let on our house. We are also victims of bad advice and have a Together mortgage. I just wondered what the outcome was as I am preparing for the worst!

Thanks!:)

holly_hobby

You may find that they add a loading to your interest rate & back date the loading to the date of rental & fees.

I agree with other posters, you are technically in breach of your mge terms in having let without consent, but lets try and look for a positive way to sort this out.

Go back to your letting agt and ask for the letter to be redrafted - tell them that you only want them to confirm the rental income achieveable for the propety, and nothing else. (you are their client, and they should adhere to your request without issue)

Then NRAM are advised that they property is to be let out, due to the circs you have given. Only answer the qs they pose, if they don't ask if it is already let and how long it has been so - then don't volunteer the info. Of course if you are asked, then you are duty bound to divulge the reqd info.

I don't think even if they become aware of its historical let (due to its A1 servicing), that they will ask for you to seek an alternative lender (if you impress upon them that you had no idea at that time that permission was reqd), but as I say they may backdate any interest rate loading accordingly.

I am sure that you are aware of declaring the rental income for inc tax purposes - if you have not been doing this, you need to address this asap.

Hope this helps

Holly

hayleyc_2

Just wondering if anyone's had a resolution to this? We're in the same sort of situation and I'm getting really worried they'll refuse our application.

Donkey12

I am in the same situation, however we were fortunate enough to be able to get another mortgage. The new mortgage company forgot to state in the terms that we had to sell our previous home. So now 2 mortgages and no consent to let on the 1st. I am worried by what Nram will do if they find out. Any help and advise??

Thrugelmir

Donkey12 wrote: »

I am in the same situation, however we were fortunate enough to be able to get another mortgage. The new mortgage company forgot to state in the terms that we had to sell our previous home. So now 2 mortgages and no consent to let on the 1st. I am worried by what Nram will do if they find out. Any help and advise??

Welcome to the board.

Best to start a new thread with your own questions. Rather than adding to a previous old thread.

Then'll you'll receive far more responses.

Gavin_C

Donkey12 wrote: »

I am in the same situation, however we were fortunate enough to be able to get another mortgage. The new mortgage company forgot to state in the terms that we had to sell our previous home. So now 2 mortgages and no consent to let on the 1st. I am worried by what Nram will do if they find out. Any help and advise??

I don't think I've ever had a mortgage offer that includes a term that forces me to sell an existing property on the purchase of the next.

Normally it is only a requirement in so much as the money is required from the sale of the first property in order to fund the purchase of the next. Also you may have had to disclose the continuing outgoing payments of the existing mortgage, as that would reduce the amount you could borrow based on income.

Presumably you have demonstrated you had enough income to continue funding the repayment of the existing property whilst now having to pay for the new one?

What you now have is two properties, neither of which is permitted to be let out (unless you request and are granted consent to let). You should inform your insurance company that one property is unoccupied - that'll hike the premium significantly (and may even require a change of insurer)

The bank won't care too much as long as you continue to make all the mortgage payments in full as they fall due.

BobQ

OP, do you have the scope to reduce the equity in your main home to enable you to increase the equity in the let property to a point where you could get a BTL mortgage on the smaller property?

Even if you let things ride for the time being, if the tenants were to leave you should take the opportunity to sort the matter out. Mortgage providers may not like giving consent but they do not like houses being left empty either so can be more sympathetic to a request if the alternative is an empty house.

When you say you have landlords insurance do you mean a policy that covers the building when let and the problems that tenants bring (eviction etc)? I ask because some landlords insurance covers just the latter. If you are relying on standard buildings insurance before you let it and you do not have permission to let that may be an issue too.