what happens if you inform santander youre renting the property?

HAMISH_MCTAVISH

Thrugelmir wrote: »

Customers must disclose all facts that are "material" (or relevant) to the risk for which they are seeking cover.

CTL is not material or relevant to insurers, as in no way changes the "risk" of a tenant damaging the property.

Insurers are very good at asking for information they feel is material or relevant. Anyone that has ever answered the spanish inquisition type questions for a motor insurance policy will know this full well.

Provided the let is declared to the insurer, they'd have no basis to reject claims.

Turnbull2000

You're best be it just to keep it on a cheaper resi mortgage. Lots of accidental landlords do this.

G_M

As Hamish says, this debate is trolling and pointless to pursue.

No - not you OP!

brit1234

G_M wrote: »

Do you understand the legal concept of 'ownership'?

Sorry - let me re-phrase that: You don't understand the legal concept of 'ownership'.

G_M do you want to ask me that question? I dare you.

Thrugelmir is right, the lender has legal ownership of the house. If G_M you knew the legal concept of ownership he would understand how different people/organisations can all have ownership of a single object at the same time.

brit1234

Turnbull2000 wrote: »

You're best be it just to keep it on a cheaper resi mortgage. Lots of accidental landlords do this.

*FRAUD ALERT*

Bad advise and your situation could be made worse if the lender found out. Be honest and speak to your lender, sort it out.

Don't commit fraud which is punishable by prison, you could have your credit ratting also ruined.

Yorkie1

Whilst I am quick to point out potential fraud on these boards, if the OP obtained a residential mortgage perfectly normally and lived there, and then only subsequently started letting the property out, then they are not committing fraud simply by failure to inform the lender of the change in status. It is a breach of the contract but not a criminal offence.

There is, of course, risk of fraud if they subsequently specifically mislead the lender either upon direct request about the situation or by way of application for a replacement product.

Henman_Bill

HAMISH_MCTAVISH wrote: »

.

An insurer who has been notified of letting, and accepts the insured on that basis, cannot back out of a claim because CTL was not obtained provided no false information was given.

If they do not ask for or require you to provide CTL information, and you don't tell them, the chances of them being able to wriggle out are virtually nil.

.

Hamish Mctavish, thanks for this very useful and relevant to me post. I believe you but just curious: what is your source for this opinion? How can you be so sure?

hugoshavez

He is right, but you're asking him to prove a negative, which is difficult.

Consent to let shouldn't prove an issue to an insurance claim, BUT it may be indicative of other issues which may be material.

Might be better if you describe your situation in a new thread on the insurance board.

Henman_Bill

Thanks for getting back to me. May be hard for you or Hamish to prove what was said but just curious on any background that led you to that belief.

I will be writing a new thread today or tomorrow. My situation is that I am considering letting out my property without a consent to do so from the bank. I will get proper landlord's insurance. Just want to be sure that the insurance will not refuse to pay out if I don't have the consent to let.

G_M

Henman_Bill wrote: »

.... My situation is that I am considering letting out my property without a consent to do so from the bank. I will get proper landlord's insurance. Just want to be sure that the insurance will not refuse to pay out if I don't have the consent to let.

Be aware there are various ways a lender may get to hear of this.

One is that many lenders insist on being named as 'interested parties' on the insurance policy, and thereby are informed each time the policy is renewed.... or cancelled. It means thay can be sure that insurance is in place.

If the policy suddenly changes to a landlords policy, they might start to wonder why!

Some lenders are more lax & don't insist on being named, so this would not apply.