Great opportunity to work in Oz but mortgage company won't let me lease property

2010nodebt

I let my house out last June , the lender do not allow this , what are they going to do about it? Nothing they can do , unless I do not pay the mortgage.

There is a risk my tenant will not pay rent , in which case I will have to pay .

These situations are not always the doomsday scenario they are made out to be.

My advice , go to Oz , so long as you could pay the mortgage if you tenant cannot.

ladymarmalade1970

I have a work colleague that is doing this at the very moment. He applied for consent to lease and his mortgage company wanted a fortune so he is "renting" his house out to someone he has known for a number of years. His wife works with them.
He has family and friends that live close to the house should there be any issues and they will sort it out for him. I do agree with they above post that these situations are not always the doomsday scenario they are made out to be......

mynameisdave

2010nodebt wrote: »

I let my house out last June , the lender do not allow this , what are they going to do about it? Nothing they can do , unless I do not pay the mortgage.

Fortunately the OP appears to be making more sensible considerations to this than you did.

There very much is something they can do. They can call your debt in and then you have to sell quickly or you're up thecreek with no paddle.

franklee

2010nodebt wrote: »

I let my house out last June , the lender do not allow this , what are they going to do about it? Nothing they can do , unless I do not pay the mortgage.

There is a risk my tenant will not pay rent , in which case I will have to pay .

These situations are not always the doomsday scenario they are made out to be.

My advice , go to Oz , so long as you could pay the mortgage if you tenant cannot.

ladymarmalade1970 wrote: »

I have a work colleague that is doing this at the very moment. He applied for consent to lease and his mortgage company wanted a fortune so he is "renting" his house out to someone he has known for a number of years. His wife works with them.
He has family and friends that live close to the house should there be any issues and they will sort it out for him. I do agree with they above post that these situations are not always the doomsday scenario they are made out to be......

Yes there are many people doing it, certainly enough to warrant a change in the law to protect tenants in October 2010 (they'd hardly have done that if it wasn't widespread) but there are also plenty of threads here from rent paying tenants whose accidental landlords have mortgage arrears (lord knows why perhaps due to arrears caused by previous voids or non-payment by the previous tenant or simply that the let is running at a loss).

In your two cases you've got away with it so far but have either of your examples needed to make a large insurance claim or has the lender discovered the unauthorised let? What would be more interesting is what happens in those cases because it is only then you find out any consequences.

I think in the boom years the lenders probably didn't much care as rising house prices were going to bail most people out, in the bust years expect things to tighten up.

franklee

2010nodebt wrote: »

I let my house out last June , the lender do not allow this , what are they going to do about it? Nothing they can do , unless I do not pay the mortgage.

There is a risk my tenant will not pay rent , in which case I will have to pay .

These situations are not always the doomsday scenario they are made out to be.

My advice , go to Oz , so long as you could pay the mortgage if you tenant cannot.

Perhaps the OP would need to read your background before taking your advice as you seem OK with a situation he may not be?

2010nodebt wrote: »

I am self employed , and live in a property owned by my wife , I have massive debts I cannot pay, I also have a BTL property now in neg equity, It has a 80k mortgage with 5k in arrears. I AM JUST UP FRONT WITH MY CREDITORS.

Simply say " I have insufficient income at present to pay anything, you can take legal action , make me bankrupt and come round my house and batter me, but none of this will get your money, when my income improves ,I will forward a payment proposal"

I owe banks, private people, and the revenue. No one has disagreed with this statement ,no one has taken action , I have not made any debt patments in a year now. I get the odd letter , which I bin, what are they going to do to me? nothing , because they will throw good money after bad.

Also sorry but I'd prefer to avoid renting from landlord in this financial position as I'd be concerned about repairs getting done or the mortgage arrears causing a repo.

2010nodebt

I have carried out repairs to my property , though only one radiator replacement , as the house was fully refurbished not long ago.

The lender does in fact know about the tenant , and simply said that they do not recognize the tenancy.

My tenant has been late 3 times with the rent , this has been discussed with me , and the mortgage companty and they are fine with it.

The insurance company are also fine with it.

The mortgage company would be pretty foolhardy to call in the debt , as they would incur legal costs . My mortgage company are hard up for cash too! Not long ago they offered a 10% reduction in the amount owed to them if I redeemed the mortgage.

I know several people who have become accidental landlords , it really is no big deal.

My tenant is on a rolling contract now any how and I could serve a S21 and give them 2 months to leave if the house was going to get repossessed , so only the mortgage company would lose out if my precarious financial position worsened.

franklee

2010nodebt wrote: »

I have carried out repairs to my property , though only one radiator replacement , as the house was fully refurbished not long ago.

The lender does in fact know about the tenant , and simply said that they do not recognize the tenancy.

My tenant has been late 3 times with the rent , this has been discussed with me , and the mortgage companty and they are fine with it.

The insurance company are also fine with it.

The mortgage company would be pretty foolhardy to call in the debt , as they would incur legal costs . My mortgage company are hard up for cash too! Not long ago they offered a 10% reduction in the amount owed to them if I redeemed the mortgage.

I know several people who have become accidental landlords , it really is no big deal.

My tenant is on a rolling contract now any how and I could serve a S21 and give them 2 months to leave if the house was going to get repossessed , so only the mortgage company would lose out if my precarious financial position worsened.

At least we agree it's a precarious position.

The tenant would lose out as they'd have to move, but that's the lot of an AST. At least you'd go for a clean break and serve the S21 if the lender starts to repossess, many landlords in your position don't do that so as to keep the rental income for as long as possible regardless of if they are using the rent to pay the mortgage (presumably you're not as you've 5K arrears?).

Of course any new tenant asking for proof of consent to let would winkle this type of situation out before they commit to a new tenancy.

2010nodebt

Yes , the tenant knows that they can be given notice at any time , they did not wish to sign a new 6 month agreement at christmas , so clearly they are keeping thier options open , they demanded a new kitchen , which I refused too .

Luckily work has picked up this year , and I will be able to pay off the arrears during may ,and start to build the house in the garden, the sale of some other land I own will clear my debts in total , this may or may not sell , though I am getting lots of enquiries.

Turnbull2000

I know a few people have couldn't get the price they demanded (or what the EA optimistically valued it at), so rented out instead. I've asked, and non of them bothered consulting their lender. I get the impression that most accidental landlords do the same.

neverdespairgirl

Wouldn't it be easier just to sell?