Consent to let

304edge

I found myself in Consent to let situation and can't change my product just yet as advised by bank. However, On my consent to let agreement it only prohibits subletting.

My question:I have been offered a Potential STA by company who will like to use place for serviced home. Not sure if I can accept or not.

Unlike say virgin money consent to let (which you can find on the web)

which stipulates consent to let cannot be used for holiday type rentals I have no such language. Can I take on such a tenant for 12 months.

I will off course switch over to buy to let at end of year in case needed. But in the meantime until I'm able to switch by the letter of law of my consent to let does not say for serviced rentals, am ok, until I can switch out to buy to let

I'm sure this my a split opinion but would interested to know from people with experience.

Thanks in advance

G_M

304edge wrote: »

My question:I have been offered a Potential STA by company who will like to use place for serviced home. Not sure if I can accept or not.

Please explain.

Are you in Scotland?

Or do you mean AST?

How can anyone/any company 'offer' you a tenancy? YOU are the landlord (at least I think you are!!)

You cannot give an AST to a company. Nor (I think) a SAT?? Scotland?)

304edge

Sorry for typo: You are correct I mean AST

No its in England, the letting agency who manages the let, put forth a potential tenant, who would be the sole name on the lease for 12 months. The tenant has suggested that they might like to use our abode as a serviced home/apt, if we agree to let to them.

franklee

It won't be an AST as for that to happen it needs to be the tenant's only or principle home. Holiday letting is a different ballgame.

304edge

Thanks Frank Lee. It is a difficult one. But for now if we leave the terms of letting agreement out since the agent seems to think they can address this. It brings us back to question of mortgage company. Will I be in breach of consent to let. Just want to make sure I give potential tenant a fair chance before saying no, as I know they will take care if the place. And also I can't afford too long a gap as the burden of mortgage will be a problem. Thx

G_M

1) don't trust the agent. Make your own decision. "The agent seems to think they can address this."

Remember, the quicker they get a tenant in - any tenant - the quicker they get paid. Problems down the line will be yours, not theirs.

2) Yes, you'll be in breach of the CTL

3) but that is insignificant compared to the issues around it not being an AST.

Say no and give our agent clear instructions.

* Letting agents: how should a landlord select or sack?

Annisele

Even a BTL mortgage might not allow you to let to a company. Generally (not always) the T&Cs of BTLs also require your tenant to have an AST - which means letting to a person who'll live there themselves.

Signing your property over on a deal like this is fairly easy. Getting your property back if things go wrong...possibly not so much.

304edge

Thanks this does seem complicated. I think the agent was also unsure but trying to help. They are quite reputed. It's unique for them too.

Two further questions.
1) how to serviced homes cone about if you have a loan against home/apt if BTL may also not be viable.
2) if I call the lender, do i risk judgement by them I spoiling our relationship with them?
Thx

304edge

Just checked. It would be a AST to a single individual for 12 months not company.

G_M

304edge wrote: »

Just checked. It would be a AST to a single individual for 12 months not company.

Sounds like the EA has gone back to the company and explained, and the company has nominated an individual to rent the place.

Expect individuals to be coming/going during the 12 months.

Remember, a tenancy is not an AST just because it says 'AST' at the top of the contract. It's the reality of the facts that determine the legal tenancy type.

Call me cynical, but I don't trust this EA (however 'reputable') and don't trust this asurance.

Another tenant will come along. Better to get the right tenant even if you lose a months rent waiting.

But it's your decision..... good luck!

304edge

Thanks GM, been cynical is welcomed. It's important to look at this from all angles and not have my head buried in the sand. Main concern was if legally I would be in breach of CTL since not clear.

I guess serviced house/apts are a Newer thing hence not in the terms of my agreement of CTL. (They are an attractive proposition since the place will be looked after to a higher standard, in this case). Which makes this a grey issues. I'm sure it will become more pronounced as time progresses and hence will need to be addressed in the forms. But your right on that people are coming and going.

Given me something to think about. Thank you