NRAM permanent consent to let

AbyssUK

Hi all more advise needed on my rental house, mortgaged by NRAM.

So back in July 2011 I was granted "on a permanent basis" a consent to let by NRAM (have the original letter). In Nov 2014, we tried to sell the place, it wasn't really in a good state to rent out. We had a few near misses, but no luck selling even after 6 months. During this 6 months I was in full contact with NRAM and made agreements to repay less than my contracted amount, we are now in a total of 4 months debit. I repeatedly stated that I would after 6 months if we had no success I'd get a tenant again. They even stated to me that would be OK because I have consent to let (only by phone!). I had the work done on the house and got a tenant. I rang NRAM to tell them the good news that I could start repaying back the debit no problem now, hopefully clear it in less than a year. They told me I needed consent to let... I stated I have it already.. they said no and I'd have to reapply (with the new extra charges etc..). I've stated I have a perm consent to let agreement.. they stated I am down as a buy to let on the system but they are unsure if I have consent to let... I stated but a tenant moves in this week.. they said I can make a complaint which can take upto 8 weeks!!!

So using the search function here I see lots about the new charges (which to be fair are not right out of the park) but I've not found anybody who has the perm consent to let option stating that they were contacted and told they needed to reapply for consent to let... is it OK for NRAM to go back on a consent to let agreement for no reason ?? Where do I stand.. I cannot get an answer from NRAM in time.. what should I do with my tenant ? Any ideas ? NRAM couldn't help me with the legal implications and seemed clueless on what to do or even if i have consent to let or not... so I have no idea now, in my book I have consent to let unless they send me something in writing saying that I don't...then that should surely come with some sort of notice period... am I being unreasonable ?

Thrugelmir

Never ever heard of permanent CTL.

mrginge

What does your original letter say?

AbyssUK

Original letters wording;
"Thank you for your application to let your property. This has now been agreed on a permanent basis subject to the following;"

The following being, (too long worded to type now..)

1. The interest will not change unless you have a Standard Variable Rate it can be changed as per the standard interest change.
2. The tenancy must be short hold only, no terms more than 12 months long. (never had an agreement for more than 12 months)
3. An admin fee of 250 quid is paid (did this!)
4. You must maintain your mortgage repayments. (never missed an agreed payment, but I am now in arrears)

It then has more blah saying make sure your building and contents cover is changed and that you must inform them as soon as you decided to move back in.

NRAM are seemingly very confused.. apparently I am in the system as a Buy to Let... which is news to me..

Somerset

Thrugelmir wrote: »

Never ever heard of permanent CTL.

I had one. Was granted about 15 years ago though. At the time, there were two options - permanent at £higher cost or (I think) three years at £lower cost. Obviously long since discontinued.

Somerset

AbyssUK wrote: »

The following being, (too long worded to type now..)

1. The interest will not change unless you have a Standard Variable Rate it can be changed as per the standard interest change.
2. The tenancy must be short hold only, no terms more than 12 months long. (never had an agreement for more than 12 months)
3. An admin fee of 250 quid is paid (did this!)
4. You must maintain your mortgage repayments. (never missed an agreed payment, but I am now in arrears)

NRAM are seemingly very confused.. apparently I am in the system as a Buy to Let... which is news to me..

I think the bolded part is what may scupper you. The continuing arrangement is dependent on contractual mortgage payments. I know you kept them in the loop ie the reduced arrangement, but the contractual payments were not being made. I'd imagine this would scupper the agreed CTL.

AbyssUK

Well looking at the NRAM terms, you could choose the 100 GBP per year fee or the "long term" 250 GBP. I went for the 250GBP as I pretty much knew I wouldn't be going back for awhile at the time.

Looking at my records the 250 was added onto my mortgage, so to be fair with the interest over the full term of the thing that 250 becomes roughly 1000.. but as the rates don't change that's a very good BTL.

FYI :- I am of course making plans, to start paying the "letting fees" I am guessing either way they will still be payable....

AbyssUK

Somerset wrote: »

I think the bolded part is what may scupper you. The continuing arrangement is dependent on contractual mortgage payments. I know you kept them in the loop ie the reduced arrangement, but the contractual payments were not being made. I'd imagine this would scupper the agreed CTL.

Yes I have thought this... but you would think they would need to tell me I'd lose my consent to let, and while discussing the arrangements not tell me I have a consent to let so getting a tenant is an option..

Anyway I guess now all I can do is firstly redo the consent to let paperwork and wait for them to make a decision...

Thrugelmir

AbyssUK wrote: »

Yes I have thought this... but you would think they would need to tell me I'd lose my consent to let,

Why? The contract terms are explicit.

AbyssUK

Thrugelmir wrote: »

Why? The contract terms are explicit.

Indeed, it does seem so; yet if I'd have been notified straight up that I would lose my consent to let upon agreeing new payment terms, I wouldn't have tried to sell.. at the time I was 1 month in credit, I would have used the money to do up the house and found another tenant. Avoiding all this mess...

Now I always stated to NRAM that I would rent out again if it failed to sell. They told me on multiple occasions that would be OK and that I had consent. I am unsure if information given to me over the phone has any legal ramifications.

But the past is the past, now lets say I don't get my consent agreed... what can I do ? Who can I talk too ? Any ideas ?

happylucky

I enjoyed permanent CTL in exchange for 250 quid....kept for 7 glorious years until I sold last year.

Perm ctl generally only went to very good credit risks (very low LTVs) so can you not just go to another provider? If so, I would simply let out and wait to be caught before switching.

I think you are technically screwed on condition 4 though. They just want people to leave so they can report to UK taxpayers what a great job they are doing. They pestered me for years...My 3% LTV (no typo!) mortgage with no missed payments, 10years of overpayments and a squillion pounds of equity on place in London. I laughed every time I ripped their letters up...Bad bank my a$$ :money:

Good luck OP and please update on outcome.