Non-owner occupier consent

kronenborg

i am renting a residential property - rental contract started 2nd jan 2013, and ends 31st dec 2014. we paid rent in full up front for the duration of the tenancy agreement. there is no break clause in the tenancy agreement.

recently it appears our landlord has decided to remortgage the property. without warning, my wife and i received consent forms from the landlord's bank, which we were being requested to sign and return to the bank - these forms appear to be requesting us to waive our rights as set out in the tenancy agreement in the event that the bank need to take ownership of the property (presumably in the event that the landlord defaults on his mortgage).

this concerns me, having paid rent up front. presumably by signing these consent forms, should (however unlikely) the landlord default on his mortgage, the situation could arise that the landlord lacked the funds to not only pay the mortgage, but also to repay any rent repayment due to us as tenants...and further, we would have to vacate the property as we would have waived any rights as non-owner occupiers in favour of the bank (by signing the forms).

as an additional factor, we are also now vaguely considering purchasing a house - and it would most definitely provide greater flexibility in this respect, if we were able to be released early from our tenancy agreement, and recoup some of the upfront rent we have paid.

we have entered into discussions with the letting agent in this respect - saying we are uncomfortable with the signing of these consent forms, and would like the addition of a break clause into our existing contract (subject to standard/reasonable notice period).

does this seem a reasonable approach, and does anyone have any experience of non-owner occupier consent forms such as those issued when a landlord remortgages, and do they represent a concern for the tenant, especially in cases where rent has been paid in advance?

many thanks for any advice.

Guest101

Are they paying you for this? if not, dont sign it.

Ask the LL to swap to a SPT. But with 3 months to go, it's going to end up pretty much the same, as just leaving it until january.

I am not sure if these consent forms are even worth the paper their written on, but i certainly wouldnt sign one for free

harrys_dad

Are your dates correct OP? Did you really pay two years rent up front or do you mean the AST runs to 31st Dec 2013? I agree you should absolutely not sign that document. If the house is repossessed the ownership reverts to whoever did the repossession (bank etc) but your rights and tenancy are maintained. Do not sign them away!

kronenborg

yup - dates are correct...i really did pay 2 years rent up front...this is in an expensive area of the south east, so its a very heft sum of money.

as things stand, i don't plan on signing away my rights with this consent form, but do have some concerns that this is going to create a problem by blocking my landlord's ability to remortgage.

i'm not an unreasonably guy, however, and cant help thinking that this presents an opportunity to get a break clauses added to the contract (enabling us to exit earlier than dec 2014 and recoup some of the up front rent, in the event we buy house), at which point we would be prepared to sign this consent form...seems to be to the benefit of both parties (LL & tenant).

PS no, they are not paying us to sign - i was rather miffed they didnt have the courtesy to forewarn us these documents were heading our way - particularly if they are such a crucial part of the remortgage paperwork

Guest101

kronenborg wrote: »

yup - dates are correct...i really did pay 2 years rent up front...this is in an expensive area of the south east, so its a very heft sum of money. Even i misread it as 2013, jeez 2 years upfront, wow.

as things stand, i don't plan on signing away my rights with this consent form, but do have some concerns that this is going to create a problem by blocking my landlord's ability to remortgage. - is it going to be your problem? no. So i recommend you getting your money back from the start of next month, and paying monthly. + Getting compensation from the LL, a reverse deposit, so if the house is repossessed, you have funds to cover moving costs. Thats IF you sign.

i'm not an unreasonably guy, however, and cant help thinking that this presents an opportunity to get a break clauses added to the contract (enabling us to exit earlier than dec 2014 and recoup some of the up front rent, in the event we buy house), at which point we would be prepared to sign this consent form...seems to be to the benefit of both parties (LL & tenant). - if you get this, and the above i said, then yes, it sounds reasonable.

PS no, they are not paying us to sign - i was rather miffed they didnt have the courtesy to forewarn us these documents were heading our way - particularly if they are such a crucial part of the remortgage paperwork - well dont sign them then. I'd be asking for a atleast £1000 to waive my rights, and probably more. Cost of moving, time off work, application fees, deposit, first month rent etc - if you did have to move.

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