Getting permission from lender to let my property?

amjad171

Hello,

Something has come up in the family which means I will need to be spending my time away from my house and be at my parents full time for the forseeable future.

I have had my house for 5 years, all payments paid on time etc, just recently I remortgaged from bristol and west to halifax. Now i'm thinking it may be better to let out my house if im not going to be there, what I want to know is can halifax send me something in writing to say they are prepared to allow me to let the property if I end up doing that.

Does anyone know if this is possible and can it be done, will they change my interest rate or charge me for this?

Biggie

bit more complex then that i'm afraid.

- Lender will reaccess and if there's enough equity they may let you shift into one of their b2l products. They may or may not charge arrangements fees but will defo increase the intreast rate

- You will also need adquate B2L building insurance

- Will need gas centificate prior to letting as well.

- Fill in tax returns.

amjad171

In an ideal world I wouldn't want to let it out but obviously if the house is empty and I can get rent for it it makes sense to exlore that avenue. If all I want at present is a letter from them confirming this is possible for me to do will they do that, so that if and when i do let it out we can discuss changing the deal to a BTL or will they want tochange to the BTL rates straight away?

Noz

it really depends on the lender, a quick call to ask what their policy is would shed a lot of light

flower_72

Some lenders don't change anything to your mortgage terms and conditions. Same rate, same everything. They might give you permission to let for 6 months, a couple or year, it all depends on the lender.
Best thing is to ring them.
It's a very straight forward and quick. Well, it has been with the woolwich for me.

taketwo

The Nationwide have been very good and flexible with me, allowing me to let mine out too without changing the mortgage

scottn

what would the impact be if amjad just rented out the property without informing the mortgage company? I'm sure you could arrange BTL insurance, gas cert etc and rent out the property for a few months without mortgage company knowing?

I am not in any way suggesting this btw! Just curious to if they would ever find out? Assuming the mortgage payments are always made as usual.

Debt_Free_Chick

amjad171 wrote: »

In an ideal world I wouldn't want to let it out but obviously if the house is empty and I can get rent for it it makes sense to exlore that avenue.

Be sure you understand what this involves. You will be handing over occupation of your property to tenants, for at least six months. You won't be able to "pop round" to collect anything or have a little check. You'll need to move/store all your personal belongings.

Would you let it unfurnished? If so, you would also need to move or store all your furniture.

Who is going to manage ongoing repairs & maintenance of the property, when the tenants have a problem?

It's nothing like having a house-sitter or friend to keep an eye on the property. For at least 6 months, the house is not your home and it needs to be managed accordingly. You'll need to make arrangements to redirect your post; terminate all the utility contracts or transfer them to the tenant; sort out council tax; telephone; broadband etc.

Remember to deal with insurances e.g. you might want to consider LL's insurance suitable to cover damage by the tenants; and you might want some LL "protection" insurance. Get familiar with your responsibilities as a LL - gas safety certificates, tenants' deposit protection scheme etc.

If your circumstances change, you can't simply ask the tenants to move out so you can move back. You will need to serve the correct legal notices in any event.

Sorry if you've already realised this, but best to be sure before you make the commitment.

Debt_Free_Chick

scottn wrote: »

what would the impact be if amjad just rented out the property without informing the mortgage company? I'm sure you could arrange BTL insurance, gas cert etc and rent out the property for a few months without mortgage company knowing?

The terms of the current mortgage would almost certainly be in breach and the tenants would be well and truly stuffed if the LL defaulted on the mortgage.

And an AST runs for six months, minimum .... if that's what you mean by "a few months".

Unfortunately, letting is not getting someone to do you a favour, by "looking after your house for a while". You hand over occupation to complete strangers under a legally binding contract, with plenty of regulations to protect their rights.

This always need full and proper consideration.

MissMoneypenny

Biggie wrote: »

bit more complex then that i'm afraid.

- Lender will reaccess and if there's enough equity they may let you shift into one of their b2l products. They may or may not charge arrangements fees but will defo increase the intreast rate

- You will also need adquate B2L building insurance

- Will need gas centificate prior to letting as well.

- Fill in tax returns.

Plus ensure that any electrical work which has been carried out since 1 January 2005, has been carried out by a suitably qualified electrician. Or you will need a certificate of Competence (I think that is the correct terminology). If in doubt, contact your local authority Building Control Department who will tell you what work can and cannot be carried out by a non qualified person.

amjad171

Thanks for all your comments, looks like I will have to leave it empty for a while rather than have the hassle of sorting things out for tenants, moving my stuff out, changing morgage details etc.

Thanks for all the replies.