Letting without consent to let.

Werdnal

If you look at one of the "stickies" at the top of the forum list, it recommends that tenants check their LL has consent to let (by way of seeing written permission from the mortgage company), before taking a tenancy. If you could not confirm this should a tenant ask, you may find it difficult to get tenants anyway.

Are you tied to your lender by any fixed contract? If not, why not speak to an independent mortgage adviser, to see if there is any way to change your loan to a BTL or another lender who would consent.

However, even if you did this, there are other regulations and legal obligations to becoming a LL - it is not pure profit, and as I have advised others here who are unable to sell, if you are already struggling financially now, how would you cope with paying a mortgage if your tenants defaulted on the rent?

Unless you are serious about getting into the letting game, and financially able to deal with the additional costs and potential pitfalls, I would suggest re-valuing your property to sell it and make a fresh start without all the additional hassle that letting can bring.

Good luck!

franklee

Also if using an ARLA registered letting agent they should check as that's what ARLA recommend. I believe if they don't the tenant could come back on the agent so that's an incentive for them to check.

franklee

mconnolly81 wrote: »

The lenders though must realise that people out there do let without consent. I guess after the clamp down on overdraft charges and PPI, charging £1499 plus the sharp end of a 1% interest hike its the next way of robbing consumers.

OTOH why should the lender take on the higher risk of a tenant over an owner occupier without charging for it. As an owner occupier you know you can keep up the mortgage repayments. As an inexperienced accidental landlord if you get a bad tenant can you cover both your living expenses and the mortgage and repair bills on the rental as well. Even if you can I expect you can see it's a higher risk to the lender? You have the alternative of staying put and keeping to the original lower risk terms if you don't want anything changed

theartfullodger

You "CAN" let without consent (I can drive @ 100mph on the M4 but may not..) but the lender will probably be made aware of new occupants (Experian run the service I think..) and then charge you even more..

You'll appreciate if you start breaking the rules & ignoring legalities it would only be fair karma /what-goes-around-comes-around if your tenant/letting agent then stitches you up like a kipper & fails to pay rent, for, say 7 months...

'tis the British, Patriotic, way to stick to the rules...

brit1234

Its your choice to become a landlord, you should have the right mortgage. If you try to deceive the mortgage company you are committing a criminal offence of fraud. It may not go that far and I am sure the mortgage company has civil ways of dealing with you.

If you don't want the right mortgage because of cost sell the property otherwise there is a program on Monday about dodgy landlords.

http://www.channel4.com/programmes/dispatches/episode-guide/series-96/episode-1

jimjames

mconnolly81 wrote: »

Thanks for all the honest and frank replies. Looks like i'm going to have to suffer the huge financial hit.

The lenders though must realise that people out there do let without consent. I guess after the clamp down on overdraft charges and PPI, charging £1499 plus the sharp end of a 1% interest hike its the next way of robbing consumers.

If you are running a business and making money from it then should the bank subsidise you over someone who is declaring their status and paying the fair rate for it.

£1499 does sound high - maybe the question you could ask here is how much other lenders charge for consent as that may help find out if the charge is reasonable or not.

neverdespairgirl

mconnolly81 wrote: »

Thanks for all the honest and frank replies. Looks like i'm going to have to suffer the huge financial hit.

The lenders though must realise that people out there do let without consent. I guess after the clamp down on overdraft charges and PPI, charging £1499 plus the sharp end of a 1% interest hike its the next way of robbing consumers.

You are ceasing to be a consumer, and starting a business.

Why not just sell?

silvercar

At that price you may be better moving your mortgage elsewhere.

No-one has to my knowledge (and I would have expected the case to be linked to on here if it had happened) been repossessed for letting a property on a resi mortgage where they have kept up with their payments. The real danger is if you get a bad tenant who doesn't pay rent or your circumstances change and you can't afford the mortgage.

Unless your financial situation is very very secure it is unfair on a reliable tenant, to risk putting themselves unknowingly in a situation where they can lose their home.

That said, there was a case on this board yesterday about a tenant fearing repossession, where the landlord did have consent to let and the lender was trying to ignore it.


Another point is that a BTL mortgage gives protection to a tenant until the end of the fixed term or standard 2 months notice on a periodic tenancy. Given that the 2010 protection of tenants legislation gives tenants 2 months notice, the difference between a resi mortgage and a BTL mortgage is less than it used to be.

moneybunny123

I have a question (sorry to hijack). I have a consent to lease with the Halifax and have rented out my property for the last 2 and a half years. However, we'll be moving back into the house soon with a view to selling it as quickly as possible. Can I move back in there myself without changing the mortgage back to a "normal" mortgage?

jimjames

moneybunny123 wrote: »

I have a question (sorry to hijack). I have a consent to lease with the Halifax and have rented out my property for the last 2 and a half years. However, we'll be moving back into the house soon with a view to selling it as quickly as possible. Can I move back in there myself without changing the mortgage back to a "normal" mortgage?

You could do that but I'd ask why you would want to as you'll be paying the premium over normal rates. I guess if you are planning to let again then it may be worth it. If you are just aiming to sell asap then you'd be best off getting onto the lower rate in case the sale drags on.