Landlord doesn't have buy to let mortgage?

pandaspot

Hi

I need a bit advice, what does it mean if your landlord doesn't have a buy to let mortgage? Just checked land reg and he is registered at rental property not address given in tenancy agreement

Thanks

kingstreet

Although it may be a pointer, he may simply have forgotten to change the correspondence address for the property at the Land Reg.

He does not have to have a buy to let mortgage as long as he has consent to let from his residential mortgage lender.

pandaspot

Ok thanks clearing that up, would have thought he would have done it after renting the property for last 3 years

19lottie82

pandaspot wrote: »

Ok thanks clearing that up, would have thought he would have done it after renting the property for last 3 years

Not necessarily - Lots of LL's don't bother as they are more expensive than residential mortgages and usually require a min of 25% equity, which many people don't have.

Wywth

pandaspot wrote: »

Hi

I need a bit advice, what does it mean if your landlord doesn't have a buy to let mortgage? Just checked land reg and he is registered at rental property not address given in tenancy agreement

Thanks

It means you're a nosey parker, perhaps with too much time on your hands.

lazer

In reality it doesn't make any difference unless the house is repossed when you have less rights than you would ahve under a buy to let mortgage.

However if he doesn't have a buy to let mortgage he is benefitting from lower rates , so more likely to be able to pay the mortgage and possibly keep the rent cheaper for you, have more money for repairs etc.

Changing the address at the land registry is something few people probably do - the key thing is usually if the mortgage statements come to you - if they do its unlikely he has buy to let mortgage.

pandaspot

Wywth wrote: »

It means you're a nosey parker, perhaps with too much time on your hands.

Lol you might well be right there

MissMoneypenny

Ask the landlord for proof of their up to date, Consent to Let, as it seems they haven't got a buy to let mortgage.

Without consent from their mortgage lender, your contract will not be honoured if the property is repossessed.

Without consent from the mortgage lender, the landlord's insurance might also be invalid, which is a worry if you or your family have to make a claim against them i.e. injury; rehousing if house is damaged in a fire.

This is from the website from ARLA (Association of Residential Letting Agents).

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

If they have cut corners by not asking for consent to let, I dread to think what else they have cut corners on. Or even whether their finances are good enough to pay for repairs, such as a new boiler.

Are you renting through an agent? If not, there is also the problem of the taxes that have to be paid.

Is your deposit protected in one of the schemes, as required by law? Have you got an in date gas safety certificate?

If the landord has consent from their mortgage lender, the lender will be sending their posts to the landlord's real address. To see if the landlord is just having their post redirected through Royal Mail, try posting an envelope, addressed to your landlord's name but at your address, to see if it lands on your mat or the landlord's.

19lottie82

MissMoneypenny wrote: »

Ask the landlord for proof of their up to date, Consent to Let, as it seems they haven't got a buy to let mortgage.

If the landord has consent from their mortgage lender, the lender will be sending their posts to the landlord's real address. To see if the landlord is just having their post redirected through Royal Mail, try posting an envelope to your landlord's name at your address, to see if it lands on your mat or the landlord's.

And wait for the S21 to land on the doormat!

MissMoneypenny wrote: »

Are you renting through an agent? If not, there is also the problem of the taxes that have to be paid.

1) Not the OP's problem.
2) Renting through an agent does not mean that a LL will definitely be paying tax on their rental income? How did you work that out?

pandaspot

Right I have actually left the property, i feel the landlord is being unreasonable about things he wants doing before the deposit is handed back.

He failed to do a lot of repairs in the house when we were there and had to leave as all he did was send round tradesmen to do quotes. He did this everytime we complained.

Obviously we had enough of false promises and left.

I suppose I was being nosey and had seen something about landlords who didn't have permission to let, didn't really know what implications this would have on us or him.

MissMoneypenny

19lottie82 wrote: »

And wait for the S21 to land on the doormat!

Why would a tenant want to stay in a property where the landlord hasn't been given consent to let? Without that consent, the tenant has less legal rights in the event the landlord has failed to use their rent to pay the mortgage and also runs the risk of the landlords insurance being invalid in ther event of a claim. We all know how insurers look for ways to avoid paying on a claim.

If a landlord can't show their Consent to Let, then they don't have it.

A section 21 won't work during a fixed term contract. The tenant should get the hell out of that place as soon as the fixed term is over, if they have been unfortunate to find themselves in a property where the landlord wasn't given permission to let the property.

19lottie82 wrote: »

1) Not the OP's problem.
2) Renting through an agent does not mean that a LL will definitely be paying tax on their rental income? How did you work that out?

1 If the landlord is living abroad and the tenant doesn't rent through an agency, then the tenant is one who is responsible to deduct the landlord's taxes from the rent and pay HMRC (unless the landlord has provided the tenant with their HMRC tax exemption).

2. The landlord may not have to pay any rent, but they have to declare their rental to HMRC.

I assume those landlords who fail to get consent to let from their mortgage lender, are also failing to declare this income to HMRC too?