Renting out my Property

daddywhite

Hi,

I need to rent out my current property as it has decreased in value, and we have a baby on the way and need a bigger place (but obviously can't sell as in negative equity).

The mortgage company has refused to move me onto a consent to let mortgage.

I am wondering what the implications would be if I just rented out my property anyway, without telling the mortgage company? Is the worst they can do just insist I leave (in which case I would have to sell and take the hit)

Any responses welcome and thanks for your time.

Annisele

If you did that you'd be in breach of your mortgage conditions. I think that the worst your lender could do would be to demand immediate repayment of the loan.

Since you say that you could "take the hit" if that happened, I assume you have enough savings to pay back the shortfall if you were to sell at the price your property is now worth? It's just that you say you "can't sell", then that you "would have to sell" - if you have the money to pay the shortfall, then technically you could sell now. If you have enough savings to bump your loan to value below 75% or so, you could possibly remortgage to a buy to let.

I don't think it would be hard for the mortgage lender to work out that you're letting the place, particularly as they've already refused consent so it's not rocket science for them to consider you might do it anyway.

Annisele

[Duplicated post by mistake and can't work out how to get rid of it].

Dick_here

daddywhite wrote: »

I need to rent out my current property as it has decreased in value, and we have a baby on the way and need a bigger place (but obviously can't sell as in negative equity).

Life just isn't fair is it. Some people would have held off from having a baby in those circumstances.

Annisele

!!!!!!_here wrote: »

Some people would have held off from having a baby in those circumstances.

True, but it's also true that some people would be so happy to have managed to get pregnant at all that they'd have their baby in any circumstances whatsoever.

OP - usually it's better to start only one thread (I didn't notice the one here when I posted). If I were you I'd stick with the other one; they're being friendlier over there!

Fishingtime

You would find that any insurance you have on the property would be null and void