What is Consent to Let?
For Landlords renting out their own home in the UK, obtaining permission from your lender is what is referred to as obtaining consent to let. If you have a mortgage on the property and it is not a buy-to-let mortgage, your lender may insist on providing you with a consent to let before you can rent out your property.
Further organisations you may need to get consent to let from include:
+ Mortgage Lender
+ Head Landlord (leasehold properties)
+ Housing associations
+ Landlord’s insurance company
Why do I need to get Consent to Let my own property?
If you let a property without the proper consent from your bank you may be in breach of your mortgage contract which could result in financial penalties such as:
Additional interest charged on top of another rate you’re paying so that there is an added rate;
and you may be forced to pay a regular additional payment or backdate any extra interest or additional payments to when you originally let your property.
and you may be forced to pay a regular additional payment or backdate any extra interest or additional payments to when you originally let your property.
When will Consent to Let not be given?
Most lenders are flexible when it comes to applying for consent to let, however some restrictions may apply such as:
You have held your mortgage for less than six months
You have not kept up to date with your mortgage payments
The maximum number of tenants on one tenancy is five and all tenants must be party to one agreement.
Tenancies must be in writing for a fixed term of up to 12 months in England and Wales
You have not kept up to date with your mortgage payments
The maximum number of tenants on one tenancy is five and all tenants must be party to one agreement.
Tenancies must be in writing for a fixed term of up to 12 months in England and Wales
