Being caught for not asking for Consent To Let

silvercar

AnotherJoe wrote: »

Why are some people saying your insurance would be invalid ? You can buy landlords insurance without having a BTL mortgage.

Having residential insurance with tenants in place may be an opportunity for the insurer to refuse to pay a claim. (higher un declared risk that tenants don't look after a property as they have now vested interest in doing so.)

Having landlord's insurance without telling the lender runs the risk of the insurer sending copies of the insurance to the lender. Either the detail of the policy or the fact that the company is "we insure landlords ltd" maybe a trigger for the lender finding out that the property is let.

Actually having insurance that allows for tenants on a mortgage with no CTL won't invalidate the insurance. A couple of years ago there was a heated discussion on this and I poured through my policy and someone else phoned their insurer to check. We could find nothing that would invalidate the policy. Though there are people that think that insurers use any excuse not to pay out, so you could end up with having to go for an ombudsman ruling on whether the storm taking the roof off your property was only because an undeclared tenant was in situ!

AnotherJoe

Having landlord's insurance without telling the lender runs the risk of the insurer sending copies of the insurance to the lender.
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Why would they do that and how would they know who its mortgaged with?

silvercar

AnotherJoe wrote: »

Having landlord's insurance without telling the lender runs the risk of the insurer sending copies of the insurance to the lender.
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Why would they do that and how would they know who its mortgaged with?

Fairly standard. Most lenders require you to register their interest on the buildings insurance policy and most insurers will send a copy of the certificate of insurance to the lender.

When I moved insurer, the old insurer notified the lender that I hadn't renewed and the lender wrote to me for confirmation that I had insurance and wanted to know the name of the insurer. Within a week I had a letter from the lender to say that they had received the insurance details from the new insurer and so to ignore the first letter.

AnotherJoe

Dont think I've ever been asked to specify who my mortgage is with by any insurance co I've insured my house with, and there have been a fair few over the years. It might just be I never noticed it when filling the forms in for insurance but I dont think thats the case.
And I've never had any letter from my mortgage co (Barclays/Woolwich) asking if I renewed and who with, when I changed.
When I took out a couple of different Landlords Insurances over time (?Bosworth? and Direct Line), I dont recall them asking either.

Guest101

AnotherJoe wrote: »

Dont think I've ever been asked to specify who my mortgage is with by any insurance co I've insured my house with, and there have been a fair few over the years. It might just be I never noticed it when filling the forms in for insurance but I dont think thats the case.
And I've never had any letter from my mortgage co (Barclays/Woolwich) asking if I renewed and who with, when I changed.
When I took out a couple of different Landlords Insurances over time (?Bosworth? and Direct Line), I dont recall them asking either.

The information is available publically though, so they can just find out who the lender is.

AnotherJoe

OK, didn't realise that thanks Guest101.
As an aside from the OPs question, so I could just go and look up who my neighbours are mortgaged with? Or anyone I fancy? I'm gobsmacked.

Guest101

AnotherJoe wrote: »

OK, didn't realise that thanks Guest101.
As an aside from the OPs question, so I could just go and look up who my neighbours are mortgaged with? Or anyone I fancy? I'm gobsmacked.

Land registry - £3 - any address, will show all who have an interest in the property (typically this will be the owner(s) and the mortgage lender.