can i let a property if it wasnt BUY TO LET????

wrightstar

Once you have a new mortgage what happens if you decide to move but want to keep the house?
Can you rent it out if it wasn't done on a Buy to let mortgage in the first place.
How soon can you do this????
Im assuming there must be rules.

Any advice would be greatly appreciated.

herbiesjp

YOu need to get consent to let from your current lender

You also need to tell your insurance providers that the building is let out, otherwise your policy would probably be void

herbiesjp

Al_Mac wrote: »

Which they don't have to give.

No they dont

Dick_here

I'd bet many, many people just go ahead anyway though.

Graeme7777

Hi,

Seems like you'd run a big risk not telling your insurer or lender.

silvercar

Graeme7777 wrote: »

Hi,

Seems like you'd run a big risk not telling your insurer or lender.

Big risk if you don't tell the insurer as your insurance wouldn't be valid.

If you don't tell your lender there is the risk they find out anyway (usually from tenants notifying the lender when post arrives). What will the lender do?

The lender could insist you move to a BTL mortgage at a higher rate; they could insist you pay £200 (roughly) for consent to lease; they could write to you and tell you its against their terms; they could do nothing.

Provided you don't fall behind with payments nothing major will happen. Fall behind with payments and the lender repossesses and has no obligation to acknowledge the rights of your tenants, so the tenants could be turfed out and sue you for breach of contract.

Many people get away with it.

mr_mortgage

If you continue to service your loan, the bank won't know or care. They are very aware that people rent out properties which are not on a BTL mortgage but don't give two hoots as long as they get their repayments.

JayZed

I agree with the comments above - I let out my property last year while I was overseas and didn't inform my mortgage company. I did inform my insurers though, and made sure that I took out landlord's insurance.

There is a catch, though, if you are planning to have the property managed by a lettings agency (as opposed to managing it yourself). The lettings agency will almost certainly want to see a letter of consent from the mortgage provider.

So if you're going to manage it yourself, you can get away without telling your mortgage provider (but do tell your insurers). If you're going to get it managed, you may need to seek consent from your mortgage provider - but as long as you've been living there and had the mortgage for at least a few months, you're likely to get consent (though they may charge a small fee, around £100-£200).

Poolman99

You can also tell the letting management company that you don't have a mortgage on the house.

I did this because I was concerned that gaining consent from a lender would add £100-£200 a month to my mortgage payment. If it's true that it's only £100-£200 and I knew it at the time I'd have come clean.

mr_mortgage

Poolman99 wrote: »

You can also tell the letting management company that you don't have a mortgage on the house.

I did this because I was concerned that gaining consent from a lender would add £100-£200 a month to my mortgage payment. If it's true that it's only £100-£200 and I knew it at the time I'd have come clean.

Smart comment. The letting agents need not know about your finances - telling them you own outright should keep them quiet.

DON'T forget about the insurance, though... or, cancel it. If you continue to pay it, it's just good money after bad.

Johnk1

Some interesting comments here.

I moved abroad a couple of years ago and wanted to keep my property so have let it out. I was upfront with the lender (Chelsea) about it but they insisted I formally request their consent to let (which cost me £150 I think) and also move to one of their BTL products...at an obviously higher rate (at the time) of interest, 5.85% fixed which expires in September.

My letting agent required proof of mortgage lenders consent which triggered it all - I never thought of the things that have been mentioned here.

The tricky thing now is that when my current deal expires I am looking at another BTL product fixed for 2 years at 7.69%, or moving to their SVR + .25% which is/was the only other option. I am reluctant to tie in for another 2 years not only because of the poor rate but because it is likely I will return to the UK in that time and may well move back or sell the property....if so I do not want to have to face early repayment charges for getting out of the BTL product.

I wish I had been aware of other options rather than informing the lender as my honesty is going to continue to cost me financially!