Mortgage lender deadline to let our property in 60 days...or get fined...any advice plz?

LondonCentral1234

Can anyone kindly advise: we completed flat purchase 3rd Oct & mortgage stipulates we rent out in 60 days of completion = 28th Nov, but builders renovation won't be completed in time.

Please see the worrying mortgage stipulation:

'Applicants must provide mortgage lender copies of Assured Shorthold Tenancy agreement within 60 days of completion. If you fail to provide it you will be in breach of your mortgage terms/conditions. Accordingly the mortgage lender may increase your interest rate and consider further enforcement action'.

We requested 90 days for refurb, but mortgage lender refused & only granted 60 days.

Many thanks in advance for any tips - we're very worried.

anselld

Well, what was your plan when you took the mortgage?
They can't take much enforcement action in 30 days or whatever short time you still need. If they tweak the interest rate for that time it is not a great cost compared to renovation and having it empty anyway. So all you can do is crack on and get it let asap.

AnotherJoe

Why did you go with this mortgage company if you were worried about a raise in rates and knew it couldn't be done in time?
As said you'll just have to live with it until the work is done and you have a tenant.

LondonCentral1234

Thanks for that @anselld, plan was to get building works in 60 days, but we lost 2+ weeks due to cowboy builder, who my husband sacked.
We hope to get it done in time but could be over deadline by those 2 wasted weeks.
Do you think it's a good idea to request an extra 2 weeks from mortgage lender...they'd have to put it to the underwriter, who originally said 'no'...?

LondonCentral1234

@AnotherJoe Building work was easily achievable in 60 days, but 1st cowboy builder delayed us by 2 weeks which is why my husband & I are here kindly asking for help.

anselld

LondonCentral1234 wrote: »

Thanks for that @anselld, plan was to get building works in 60 days, but we lost 2+ weeks due to cowboy builder, who my husband sacked.
We hope to get it done in time but could be over deadline by those 2 wasted weeks.
Do you think it's a good idea to request an extra 2 weeks from mortgage lender...they'd have to put it to the underwriter, who originally said 'no'...?

Personally I would just keep quiet and push on asap. When/if they communicate plead circumstances beyond control, nearly complete, on the market, etc, etc. There is going to be an exchange of letters before anything happens so no point accelerating that at this point.

martinthebandit

anselld wrote: »

Personally I would just keep quiet and push on asap. When/if they communicate plead circumstances beyond control, nearly complete, on the market, etc, etc. There is going to be an exchange of letters before anything happens so no point accelerating that at this point.

This ^ is what I would do, although I would also try and have a tenant lined up ready to go and some paperwork to prove it.

AnotherJoe

LondonCentral1234 wrote: »

@AnotherJoe Building work was easily achievable in 60 days, but 1st cowboy builder delayed us by 2 weeks which is why my husband & I are here kindly asking for help.

So no real contingency then? Anyway What's the worst that can happen, a few extra weeks of higher interest and most likely by the time their bureaucracy gets round to doing something You'll have a tenant in.
Many other bigger things to worry about than this especially since there's nothing you can do about it, apart, as said looking for tenants in parallel with the building work so they are ready to move in when it's done.
Certainly I wouldn't be poking the ant hill of the lender with a worry stick, though if this is sucha worry wait until you've got tenants in

LondonCentral1234

@anselld, great advice thanks everso, hadn't factored in length of time lenders/underwriters take to respond!
2nd builder is great, 1st builder was racist/misogynist & despite recommended, a nightmare. Estate agent advertising our property knows the situ, so we'll keep heads down & fingers crossed.

LondonCentral1234

Thanks @AnotherJoe, bureaucracy for once a good thing & agent will advertise next wk - though not sure how that will go minus property photos to show prospective tenants!
We had worries of buying from a bankrupt, who hid his financial state so completion took 9 months; 2nd builder found large drug stash in walls; we're still trying to sort gas/elec & other debt bankrupt left which our less than helpful solicitor failed to address prior to exchange.

So fingers crossed for now.

LondonCentral1234

One last question if I may please, does anyone know what 'enforcement action' means, (bearing in mind our solicitor proved increasingly unhelpful as 9 month purchase dragged & if we ask lender we're potentially raising alarm...):

'mortgage lender may consider further enforcement action'. ??