Consent to Let - Problems with Deeds

schrodinga

Hi guy, looking for some advice.

I have a flat I'm considering letting out. It's a nice flat and should hopefully attract a rate which would just cover my mortgage payments; in other words I won't be making any profit from the venture.

My only problem is with the deeds to the flat...

I purchased the flat in a regeneration area. The local authority for the area were looking to attract private house buyers and particularly first time buyers (like me!) to build a community atmosphere. In order to prevent 'transient' buyers it was written into the deeds that the property could not be let out.

The world has obviously changed a whole lot in the intervening period. This clause was written in boom times, and is becoming increasingly difficult to uphold in these harder times. A number of my neighbours are renting their flats out, there are to let signs everywhere and their deeds will match mine.

I'm thinking of approaching my mortgage company asking consent to let. However, not sure if they will check the deeds before giving consent. Is this part of standard procedure? Should I expect a no straight off? How practical is this clause to uphold? And what other options do I have, if any?

Thanks in advance!

whitepaper

schrodinga wrote: »

Hi guy, looking for some advice.

I have a flat I'm considering letting out. It's a nice flat and should hopefully attract a rate which would just cover my mortgage payments; in other words I won't be making any profit from the venture.

My only problem is with the deeds to the flat...

I purchased the flat in a regeneration area. The local authority for the area were looking to attract private house buyers and particularly first time buyers (like me!) to build a community atmosphere. In order to prevent 'transient' buyers it was written into the deeds that the property could not be let out.

The world has obviously changed a whole lot in the intervening period. This clause was written in boom times, and is becoming increasingly difficult to uphold in these harder times. A number of my neighbours are renting their flats out, there are to let signs everywhere and their deeds will match mine.

I'm thinking of approaching my mortgage company asking consent to let. However, not sure if they will check the deeds before giving consent. Is this part of standard procedure? Should I expect a no straight off? How practical is this clause to uphold? And what other options do I have, if any?

Thanks in advance!

Even if you obtain consent to let from your mortgage provider, that will not alter the fact you are not permitted to let the property under the current terms of the lease.

You could apply for a deed of variation, and if granted, this would revise the terms of your lease that would then not prevent you from letting the property. How do you know the other leaseholders who are now letting have not done this?

Also, if you get a deed of variation, then the terms of the lease won't affect the mortgage provider decision in whether they grant you consent to let.

But if the rent you think you'll attract will not generate a profit in this time of historically low mortgage rates, I would suggest you cut your losses and sell now!
What will happen if mortgage rates go up ... as they surely will one day.

lou2003uk

Hate to say but I had the same problem lender allowed me to let but your deeds are with the local authority .

I had to buy them out of my property they had 20% stake in it . You pay all the lawyers fees, survey fees and then the cost to buy out there share cost me 23k in total absolute nightmare and one reason I advise everyone away from schemes like this.