Renting out my property

new_home_owner_3

Werdnal wrote: »

If it never happens, then why was the Mortgage Repossessions Act changed to protect tenants from immediate eviction when a LL fails to get consent to let and the lenders repossess?

http://www.communities.gov.uk/news/housing/1730319

And if it does happen please show me any case or any story in the uk Where a bank as repossessed soley on someone not getting consent to let?

I know you wont find one, ive searched high and low a bank will only repossess when they dont recieve the mortgage payment, theres loads of people renting without consent.

SuzieSue

There are probably tens if not hundreds of thousands of people renting out their property without obtaining permission from their lender, however it is very risky especially as your insurance will probably not be valid even if you have landlords insurance. If your property burns down your insurance company will find any way it can to wriggle out of paying and not having consent to let will give it the perfect excuse.

new_home_owner_3

SuzieSue wrote: »

There are probably tens if not hundreds of thousands of people renting out their property without obtaining permission from their lender, however it is very risky especially as your insurance will probably not be valid even if you have landlords insurance. If your property burns down your insurance company will find any way it can to wriggle out of paying and not having consent to let will give it the perfect excuse.

just make sure you look through the terms of your insurance, ive looked through my landlords building insurance and it says nothing about my insurance being void if you havent got consent, it does say all gas certificates need to be up to date.

SuzieSue

new_home_owner wrote: »

just make sure you look through the terms of your insurance, ive looked through my landlords building insurance and it says nothing about my insurance being void if you havent got consent, it does say all gas certificates need to be up to date.

As other people have said, just because it doesn't explicitly say anything about it in the insurance policy, it doesn't mean that when you try to make a claim the insurance company won't say that you have not disclosed all material facts i.e. the fact that you are breaching you mortgage contract. There have a be few posts on this forum where insurance companies have not paid out when the landlord didn't have consent to let or a BTL mortgage.

tbs624

daddywhite wrote: »

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.

That's likely to be precisely because you have insufficient equity.

There is a far greater risk to the Lender when a property is rented out - that's why a greater deposit is required and a higher interest rate tends to be charged on BTL mortgages.

If you are on a residential mortgage then clearly you would be in breach of your mortgage Ts and Cs if you let the property without your Lender's consent.

Note Yorkie's post and read more here

Were you perhaps also thinking about not letting your insurance company know, not declaring the rental income to HMRC, not bothering to scheme register the T's deposit, not getting a gas safety cert etc?

daddywhite wrote: »

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)

Breaching your mortgage terms isn't likely to be helpful if you are likely to want another mortgage in the future.

Rather then trying to let the whole property ( with all the potential issues that tenancies can bring, including a T who stops paying the rent for whatever reason) is there the possibility that you could take in a lodger, making use of the "rent a room" annual allowance? There is even a website that specialises in Mon to Fri only lodger lets, which would obviously give you a breather at w'ends