Consent to Let or Let without Consent???

fimonkey

Out of interest does the same apply for lodgers if the mortgagee still lives there but lets out other rooms. Do you need permission then from mortgage company?

The_J

Not usually fimonkey.

holly_hobby

No, as the mortgagor is on site so to speak and it remains their primary residence - it is perceived that they will ensure the property isn't trashed by the lodger/tenant, to an extent causing serious finanical issue and suriety issues for the lender.

With regards renting the whole property, and the increase in rates (due to income being derived) - once its let for commerical return i.e rent - it becomes a semi commerical dwelling of the owner and increased risk of default and suriety of the lender - and therefore can not remain on residential loan rates due to the increased risk factors.

This is because the lender will consider that the owner (having a separate primary residence), in times of financial trouble. may well elect to maintain the mge on their own home (for obv reasons), rather than that on a property they no longer reside in which is rented - hence the added risk and higher rates (along side the tenant issue of course).

Hope this helps

Holly

Thrugelmir

holly_hobby wrote: »

With regards renting the whole property, and the increase in rates (due to income being derived) - once its let for commerical return i.e rent - it becomes a semi commerical dwelling of the owner and increased risk of default and suriety of the lender - and therefore can not remain on residential loan rates due to the increased risk factors.

This is because the lender will consider that the owner (having a separate primary residence), in times of financial trouble. may well elect to maintain the mge on their own home (for obv reasons), rather than that on a property they no longer reside in which is rented - hence the added risk and higher rates (along side the tenant issue of course).

Also far greater possibility that the property will not be maintained to such a high standard or quality as an owner occupied property. Thereby reducing its resale value as well.