Letting a flat with a mortgage

poohwithmoney

Hi

I have brought a new house with my boyfriend and it has completed really quickly - we move in, in two weeks. I have my own flat which i brought last April so i decided to let it, i put it in the hand of the estate agent on Saturday and checks depending have rented it all ready. Now here's my problem, when i originally started looking at places i rang Northern Rock about my mortgage and they said call back if i find a house. Just called them and they have said i need to fill in consent to let form before i can rent the flat out ekkkk ( i only have two weeks to sort this out) and then they will decide if they want me to let the flat. Does anyone have any understanding of letting flats. Loads of people have said i should not have mentioned anything to NR but i want everything to be above board.

I am really panicing now in case they won't let me rent the flat

x

Alias_Omega

I always thought u needed a buy-to-let mortgage for on house / flat you were going to rent out.

I know in the forces people rent them out without them knowing, but a mortgage advisor strongly advised me not too.

RHemmings

I've heard, this is not personal experience, that some mortgage companies will allow you to rent out a flat/house with a regular mortgage on it. But, every time I've heard of this happening, the mortgage company has charged a fee for this. Sometimes large.

plane_boy2000

I did it a few years back with BOS. Charged me £50 admin charge and then gave me a letter confirming their consent.

All very easy and only took a couple of weeks.

Alternativly just get you mail redirected for a while...........

meredeterre

As a tenant who is potentially going to be evicted because my landlord's mortgage company is repossessing the house I would strongly urge you to get the proper permissions sorted out. We have no idea atm if our landlord has permission to rent the property from the mortgage company (although are suspecting not from what else we know about her) & if she doesn't then we could theoretically be evicted without notice as (I think) it means our tenancy isn't valid....not that I am saying you will have your property repossessed...but there are good reasons for having these things..& not just for your benefit. I really wouldn't wish this situation on my worst enemy.

bobbie78

I am completing on a house on friday but I have a NR mortgage and in the paperwork I just got they charge you 250 to change it to give you permission to rent out. What you have to do to get their permission apart from begging I don't know.

poohwithmoney

Hi,
Thanks for all your replys. I called Northen Rock back and they said they'll get some one to call me this aftenoon to go through how it all works
x

debbie1976

Can anyone help? I have a Northern Rock Mortgage on a flat that I want to rent out (I can't sell as have now fallen into negative equity) and desperately need to move out as very bad neighbours are making life unbearable - abusive and constantly rowing which makes life stressful!
The freeholder of the flats want to rent our flat privately (he lives in the block right now and will be putting his son in his own flat) but sadly can't do anything about the neighbours as they are council tenants and the council won't help us.
When I initially contacted Northern Rock they made it all sound simple and that I just needed to pay an admin fee. However, having contacted them again today to chase the letter giving us consent, I was advised I need to have 30% equity in the property and the rental income must be 120% of the mortgage payment (which it wouldn't be).
My mortgage contract states ' We will give our consent to let unless it is reasonable for us to refuse it' is this reasonable? The orignal agreement makes it sound like it's no problem but now I suddently need £60k to make it happen?!
Does anyone have any experience in this and what are the consequences of potentially renting it out with no consent (and this would have to be privately, where will I stand if the freeholder doesn't pay me?)

Thanks
Debbie

SquatNow

bobbie78 wrote: »

I am completing on a house on friday but I have a NR mortgage and in the paperwork I just got they charge you 250 to change it to give you permission to rent out. What you have to do to get their permission apart from begging I don't know.

You answered your own question... you have to pay them £250.

Given how much more expensive BTL mortgages are, this is an absolute bargain.

silvercar

Does anyone have any experience in this and what are the consequences of potentially renting it out with no consent (and this would have to be privately, where will I stand if the freeholder doesn't pay me?)

Just do it, the world won't collapse. Nothing will happen provided you pay your mortgage on time.

Don't let it privately, get a proper AST in place. To protect you and your tenant, get the correct gas safety certificate, get landlord building insurance if you need it and take a deposit and protect it.

Premier_2

Best not to let a property in breach of the terms of your mortgage.