We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Consent to Lease Dilema
scoops82
Posts: 247 Forumite
Hi
A year ago my MP provided me with CTL. The agreement was that every 6 months they would add a charge of 0.5% of the O/S mortgage balance to the account. This equates to about £375 every 6 months.
However, after taking the first and second payments I have noticed that they have not added the charge which was due this month.
I'm thinking this is their error and therefore it up to them to realise it and rectify it but I'm also concerned that it would also mean I no longer have CTL.
What would you do - ring them up and let them know or wait until they realise their mistake? Or am I missing something?
On the CTL application it says (my answers/comments in red)
How long will the tenancy be for? 3 Years
If CTL is granted then it will be for a maximum of 3 years. After this time I must reapply.
The CTL charge will be added on the 1st of each month. They charge it on a different day and not the day they set out in their agreement.
The CTL charge of 0.5% of the capital balance will also be applied for every agreed 6 month tenancy period.
Thanks is advance.
S
A year ago my MP provided me with CTL. The agreement was that every 6 months they would add a charge of 0.5% of the O/S mortgage balance to the account. This equates to about £375 every 6 months.
However, after taking the first and second payments I have noticed that they have not added the charge which was due this month.
I'm thinking this is their error and therefore it up to them to realise it and rectify it but I'm also concerned that it would also mean I no longer have CTL.
What would you do - ring them up and let them know or wait until they realise their mistake? Or am I missing something?
On the CTL application it says (my answers/comments in red)
How long will the tenancy be for? 3 Years
If CTL is granted then it will be for a maximum of 3 years. After this time I must reapply.
The CTL charge will be added on the 1st of each month. They charge it on a different day and not the day they set out in their agreement.
The CTL charge of 0.5% of the capital balance will also be applied for every agreed 6 month tenancy period.
Thanks is advance.
S
Scoops 
0
Comments
-
The first couple of interest loading adjustments may have been done manually. Thereafter the loading has been incorporated into the monthly interest charge.0
-
Thanks - so you would expect that the interest charge at the end of this month to be quite a bit higher than the pervious months? If that's the case I will check it again at the start of August - If not though should I tell them of wait until they realise their mistake?Scoops0
-
Have your monthly repayments changed since being granted CTL?0
-
No they haven't - the 2 previous charges appear as a separate line on the mortgage statement as "CONSENT TO LEASE" - the paperwork I have suggest it was granted for 3 years so I think I will work on that assumption.
If they realise their mistake the worst they will probably do is just add back the charges - although I know they could do a lot worse if they really wanted and believed I was in the wrong.Scoops0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards