Olympic Let - Bank dates do not math what we need by 5 days and cant budge

QfanatiQ

doing the right thing we have approached our mortgage company to get permission for a let over the Olympic Period. We need it from mid July until Mid August.

The bank offers this but have informed us, as they have everything pre-set-up the dates are late July to late september. We expressed we need it for a good few days before their stated start date only to be told they are not abel to change the policy and can only give permission between stated dates.

Again, I feel by doing the right thing (informing mortgage company) has slapped us down. As far as they are concerned they are NOT abel to nor can they OFFER any kind of allowance for those extra few days.

As a constant worrier (not that anyone can say yes or no directly) I am keep to have informed cover, but for the sake of a few days I am thinking sod it. If I have all necessary insurances in place then we will be fine no (well, I know possibly no).

A bit miffed at this unnecessary complication.

Anyone got any pointers or avenues to explore?

Q

The_J

I couldn't possibly advise you to do what I would do.

You're right though, I expect a lot of people are going to do this and won't even mention it to their mortgage company and the mortgage company will never find out.

silvercar

What are your risks?

That the lender finds out and tells you to stop letting it?

That the lender tells the tenants you don't have consent to let?

For a long term let the tenants position in their home may be in jeopardy, for a short term let I can't see it makes a difference

Joe_Bloggs

Can you reside underneath the floorboards/ live in the loft. They can be your guests. This kind of thing is very popular in and around Wimbledon.
J_B.

MissMoneypenny

QfanatiQ wrote: »

If I have all necessary insurances in place then we will be fine no (well, I know possibly no).

Anyone got any pointers or avenues to explore?

Get it in writing from those insurers that they will still pay out on a claim even if you don't have consent to let at the time. You don't want a fire and then find out your insurance is void.

The Association of Residential Letting Agents (ARLA) have a warning on their website

http://www.arla.co.uk/information/insurance/buildings-insurance/

"Consent. It is essential that you advise and obtain consent to let your property from your mortgage lender, existing insurer and head lessee (for leasehold properties). Failure to obtain written consent from these parties may render your insurance void in the event of a claim. Sadly there have been many instances where buildings claims have been totally rejected because the insurer and or mortgage lender was not advised the property was let."

QfanatiQ

Cheers, I will be insuring it for two months so covering the part in the middle.

We are at a head with the bank that it being these few days. Agency worse then useless but seeing them today as it is just this (insurance) I want to be covered for and make sure it is ok jsut in case. Insurance is a gamble basically and a very low risk, but all in all, better to have everythign in place.

Cheers......Q

Conrad

I can tell you a number of people I know are doing this for the Olympic period and have not told thier lenders. I agree you should tell your insurers and get clear written permission otherwise for example if there was a fire and someone killed / injured, you could litterally be sued for millions.

Senior_Paper_Monitor

I agree 100% with Conrad (and otehrs) on this one - frankly this occurs every Wimbledon , Henley, Slverstone, Rufer Cup, Open and shed loads of other events.

I am one of the first to warn off people who rent (specifically under AST) without lender approval but I see no way it applies here.

Thrugelmir

QfanatiQ wrote: »

Insurance is a gamble basically and a very low risk, but all in all, better to have everythign in place.

Insurance isn't a gamble its reassurance. If the house was to be badly damaged by the tenants or at worst burnt down by a fire (easy to start with an overheated chip pan for example). Then you are left with debt and no asset other than the land.