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  • FIRST POST
    • notaclue2018
    • By notaclue2018 5th Jan 18, 5:36 PM
    • 30Posts
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    notaclue2018
    Consent to let - forgot to reapply
    • #1
    • 5th Jan 18, 5:36 PM
    Consent to let - forgot to reapply 5th Jan 18 at 5:36 PM
    Hello

    I took out my mortgage in 2008. In 2009 I went overseas to work and applied for consent to let which was granted. I thought this was on a rolling basis for as long as I was overseas, but I now realise it was only for one year. I have been overseas since and the property has been let ever since.

    My lender doesn't provide buy to let mortgages, which I now realise I need. I am urgently speaking to a broker to see if I can remortgage with another lender. However I am unsure how to come clean with my current lender, if at all - should I tell them I made an honest mistake, that I simply misunderstood their consent (they never wrote to me to tell me it had been terminated, for example). When they said it was approved for a 12 month tenancy I thought that was the type of rental contract I should stipulate (and that is what I have had for the last 9 years on a rolling basis), not that the offer was only valid for 12 months.

    I'm terrified I'll be accused of mortgage fraud or heavily fined or something. I am trying to put things right and maybe if I can remortgage with a buy to let elsewhere I just shouldn't tell them at all. But I am the kind of person who loses sleep over this kind of thing and I want to do things right!

    I have always kept up with payments etc so I am in no other trouble with them!

    Thanks in advance for your help.
Page 1
    • Thrugelmir
    • By Thrugelmir 5th Jan 18, 5:39 PM
    • 58,914 Posts
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    Thrugelmir
    • #2
    • 5th Jan 18, 5:39 PM
    • #2
    • 5th Jan 18, 5:39 PM
    Is your insurance cover valid?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • notaclue2018
    • By notaclue2018 5th Jan 18, 5:41 PM
    • 30 Posts
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    notaclue2018
    • #3
    • 5th Jan 18, 5:41 PM
    • #3
    • 5th Jan 18, 5:41 PM
    How would I know? I have landlords insurance if that's what you mean.
    • silvercar
    • By silvercar 5th Jan 18, 6:26 PM
    • 37,303 Posts
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    silvercar
    • #4
    • 5th Jan 18, 6:26 PM
    • #4
    • 5th Jan 18, 6:26 PM
    You won't have been commiting mortgage fraud as you applied for your mortgage with the intention of living in the property. What you have done is breached a term of your mortgage.

    How would I know? I have landlords insurance if that's what you mean.
    By reading the T&Cs. I would hazard a guess you would be fine. Mine notes the lender as having a mortgage on the property, it makes no mention of consents. Thinking logically, the risk to the insurer doesn't increase because you don't have consent. That said, insurers are often thought to wriggle out of claims where they can, though when this is raised on the forum, no one has ever managed to find any reference to a claim being denied where the landlord had landlord's insurance and had registered the mortgage lenders interest in the property but not consent to let.

    if I can remortgage with a buy to let elsewhere I just shouldn't tell them at all.
    That is one strategy, another would be to come clean, but you do risk them loading your interest rate.

    Where have they sent correspondence? If they continue to write to you overseas then you assume they know you are not in the property. Or do they write to the property and the tenants forward the post (or not)?
    • notaclue2018
    • By notaclue2018 5th Jan 18, 7:04 PM
    • 30 Posts
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    notaclue2018
    • #5
    • 5th Jan 18, 7:04 PM
    • #5
    • 5th Jan 18, 7:04 PM
    I just phoned them because I felt sick to my stomach. Turns out the consent expired in 2012. I said i had never received any renewal forms which is true. They said just to reapply asap and that it would probably be fine and I wouldn't be sent to jail like I feared! If they decline the consent I will have to cross that bridge when it comes to it. I guess i would have to kick out the tenants or sell up. But I think I will sleep a little better tonight. Thanks all.
    • notaclue2018
    • By notaclue2018 5th Jan 18, 9:19 PM
    • 30 Posts
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    notaclue2018
    • #6
    • 5th Jan 18, 9:19 PM
    • #6
    • 5th Jan 18, 9:19 PM
    Oh god I still feel so sick and like I've committed a terrible crime. I really hope it will be ok.
    • karcher
    • By karcher 6th Jan 18, 1:00 PM
    • 1,853 Posts
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    karcher
    • #7
    • 6th Jan 18, 1:00 PM
    • #7
    • 6th Jan 18, 1:00 PM
    Oh god I still feel so sick and like I've committed a terrible crime. I really hope it will be ok.
    Originally posted by notaclue2018
    Let us know what happens OP.
    • notaclue2018
    • By notaclue2018 6th Jan 18, 1:12 PM
    • 30 Posts
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    notaclue2018
    • #8
    • 6th Jan 18, 1:12 PM
    • #8
    • 6th Jan 18, 1:12 PM
    I didn't sleep a wink last night so I phoned them again this morning and once again they were very reassuring - told me I had done the right thing to tell them and to reapply asap which I did as soon as the post office opened. I still won't fully relax until the paperwork through but I was very impressed by how pragmatic they were. I am 4 months pregnant and could really do without this stress.
    • strawberries1
    • By strawberries1 7th Jan 18, 12:56 AM
    • 677 Posts
    • 146 Thanks
    strawberries1
    • #9
    • 7th Jan 18, 12:56 AM
    • #9
    • 7th Jan 18, 12:56 AM
    Who's your lender OP? I trust it will be ok in the end. HNY.
    • notaclue2018
    • By notaclue2018 7th Jan 18, 6:59 AM
    • 30 Posts
    • 5 Thanks
    notaclue2018
    Hi - it's Lloyds. I have to trust in the fact that honesty is the best policy and that I made an honest mistake. I'm happy to take any financial penalty and do whatever it takes to put it right. Surely they will look favourably on such a position, idiotic as I have been. That still didn't stop me waking up at 3am to worry about being repossessed though! I think that realistically the worst case scenario is that they say no and I have to mortgage or sell up - do you think they would give me, day, 6 months to do so? My tenants lease is up in August though maybe i could try to pay them off to leave earlier if it came to it. Maybe I'm over worrying though? Does anyone know of other times this has happened?
    • silvercar
    • By silvercar 7th Jan 18, 9:37 AM
    • 37,303 Posts
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    silvercar
    Maybe I'm over worrying though?
    Definitely over worrying.

    Worst case is that they say they can't renew consent and require you to move your mortgage elsewhere. You agree to do that and start looking around.

    Next worst case is that they load your interest rate by say 1%.
    • notaclue2018
    • By notaclue2018 7th Jan 18, 10:05 AM
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    notaclue2018
    That is reassuring. Thank you. I'm such a goody two shoes normally so the thought of doing anything wrong horrifies me.
    • notaclue2018
    • By notaclue2018 8th Jan 18, 10:45 AM
    • 30 Posts
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    notaclue2018
    Can anyone else offer me reassurance on this? I am really not handling the situation and stress well. I've barely slept or eaten since Friday. I was physically sick all day Saturday. I spoke to Step Change Financial Solutions charity this morning who said I had done the right thing but of course couldn't give me any guarantees on the outcome. If Lloyds asked me to look for a new buy to let mortgage would they give me a reasonable amount of time to find one? On Saturday I found out I'm not showing on the electoral roll, I've since added myself but won't appear on the register until 1 February. Not sure how quickly the credit agencies will update my profile after that. Ditto, would they give me a reasonable amount of time to turf out the tenants (I think the earliest I could ask them to leave is 10 August) if they wanted me to stop letting the property? I am so stressed about this my husband thinks I need to see a doctor.
    • scoops82
    • By scoops82 8th Jan 18, 12:41 PM
    • 237 Posts
    • 22 Thanks
    scoops82
    Im sure you will be fine. I had consent to lease and it over experied and nothing ever happened.


    Have you look at mortgage calculators to see iof you would qualify for a BTL mortgage, do you have any equity in the rental property?
    Scoops
    • Tropically
    • By Tropically 8th Jan 18, 12:59 PM
    • 269 Posts
    • 814 Thanks
    Tropically
    You will be totally fine, nothing bad will happen at all. The mortgage company just cares about money, you've been paying as expected, do not worry at all. I doubt that the mortgage company will even be bothered. It's not worth the hassle for them - you have not broken ANY laws or anything, you just accidentally didn't follow the terms of your agreement.
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
    • silvercar
    • By silvercar 8th Jan 18, 3:55 PM
    • 37,303 Posts
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    silvercar
    If Lloyds asked me to look for a new buy to let mortgage would they give me a reasonable amount of time to find one?
    They consented to let initially. They are aware as anyone that tenancy law requires 2 months notice for a landlord to evict tenants after the end date of a tenancy, plus longer if the tenants resist.


    As another poster says, you have not broken any laws.

    Please chill.
    • notaclue2018
    • By notaclue2018 11th Feb 18, 8:07 PM
    • 30 Posts
    • 5 Thanks
    notaclue2018
    I wanted to update this thread in case anyone else reading this is in a similar position. My mortgage company (Lloyds) has now confirmed that they will grant consent to let for another year, which gives me time to consider selling up/moving to a buy to let elsewhere. They really didn't seem to think it was a big deal at all and actually laughed when I said I hadn't been sleeping over it! I have to say they've been really nice about it all and their customer service has been excellent. Thank you to everyone who took the time to comment above and reassure me! What a great resource this forum is.
    • Thrugelmir
    • By Thrugelmir 11th Feb 18, 8:11 PM
    • 58,914 Posts
    • 52,233 Thanks
    Thrugelmir
    My mortgage company (Lloyds) has now confirmed that they will grant consent to let for another year, which gives me time to consider selling up/moving to a buy to let elsewhere.
    Originally posted by notaclue2018
    After the year is up. What will Lloyds position be then. (As of now as their position could change).
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • notaclue2018
    • By notaclue2018 11th Feb 18, 8:16 PM
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    • 5 Thanks
    notaclue2018
    I don't plan to rent it out beyond a year, so it doesn't really matter - I will either move back in/sell up and if for any reason my plans change I will switch to a buy to let if I decide to make it an investment property after all. I will most likely try to sell it.
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