NRAM consent to let

Midwife

A bit concerned as have seen a few thread ps on here recently re the above. NRAM granted us consent to let in 2009, as I recall it at the time we made a one off payment and consent to let was granted, no time scales discussed or stated. I've read a lot on here about NRAM writing to revoke consent to lets or that you have to renew it after a year etc. Can anyone explain if they are likely to get in touch with me about this or is it a case of if CTL is granted prior to a certain point then I'm ok?

Thrugelmir

CTL is only ever intended to be a temporary arrangement. Normally for a period of 3 years. For example where the homeowner relocates abroad for due to work committments.

Certainly for a period of time lenders became lax and didn't enforce any policy regarding CTL. Times are changing. If the property is now retained by the owner and is being let on a commercial basis, i.e. as a business. Then the lender may well change the rules. As CTL is granted at the lenders discretion and on their terms.

amnblog

CTL is only a short term solution to what should be a short term issue.

The idea is that it is used when you need to leave the property for a limited period.

Many borrowers however, have no intention of ever returning to live in the property. In this case the borrower has a residential mortgage arrangement on a property that is now held for commercial reasons.

At some point you can expect the lender to ask you to switch to a buy to let mortgage arrangement, or sell and redeem the mortgage.

The opportunity you have is that Lenders are pretty bad at keeping tabs on these cases and you may well be 'forgotten' for some time.

Midwife

Ok thanks, guess I just keep my fingers crossed and hope I hear nothing for a while.

amnblog

Yes

The Ostrich approach is probably best

Midwife

Sarcasm always appreciated. When we got the CTL we were charged £250 for a 'long' one off CTL, there was no hint that this would come to an end so long as I kept up my end of the agreement, ie paid the mortgage - which I have always done. If I had wanted a 'short' CTL there was the option of a smaller fee but it was clear this would need to be renewed, I don't think it is now unusual for me to be wondering where I now stand as it appears that NRAM have changed the goalposts somewhat.

So no the ostrich approach may not be the best thing long term but realistically why would I draw NRAM's attention to me if it will have a negative effect on me?

Leon_W

I don't think amnblog was being sarcastic.


If it were me I'd keep my head down as well.


If you haven't been contacted then what's the problem ? I would however refrain from contacting them asking for clarification ! As far as you are concerned you have consent to let - end of.

Midwife

Oh. Well in that case I apologise for getting on the defensive, sometimes the written word is easy to read tone into that isn't there ( I just know if I used those words I would be intending it to read sarcastically so maybe projecting a bit there...)

Yes, if I haven't heard anything then you're right I am not about to remind them of my existence I just wondered if the wise MSE'ers knew if it was definite that I would hear from them at some point.

Thrugelmir

Midwife wrote: »

as it appears that NRAM have changed the goalposts somewhat.

Northern Rock didn't deregister as a "mortgage lender" until 2010. So 2009 was a different era. Times have changed.