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Consent to lease charges - Legal?

I have to let my flat because I'm being posted by the army. My mortgage provider -Intelligent Finance- has told me that I have to pay them an "administration" charge of 0.25% of the capital balance every 6 months. This equates to £575 per year. I asked them what this adminstration consisted of and was told that the charge was so that I could "ask permission" to let out my home. How can this be justified? And is there any recourse?

Comments

  • krispy444
    krispy444 Posts: 94 Forumite
    Unfortunately this is the sort of thing they do, and it is easy money for them. They are probably asking for it every 6 months as they are supposed to approve the Shorthold Tenancy Agreement that you get drawn up with your tenant. It does seem a lot of money.
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    have you read the T&Cs when you bought the mortgage ?
  • Ivrytwr3
    Ivrytwr3 Posts: 6,304 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    taht is scandalous!!! Yes consent to let charges are legal, but that is a very high amount! I pay £125 for 3 years consent and i know some lenders who haven't charged any. Especially when you are Forces and have no option but to move where sent.

    Sorry i can't be more of a legal help, but i agree with your concerns.
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