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Need professional advice for your consent to let with Handelsbanken? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Handelsbanken consent to let: Q and A’s
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Doing everything by the book I’ve been leasing out my house with "consent to let" from Handelsbanken on a standard mortgage for the past three years. Handelsbanken have just written withdrawing their consent to let unless we transfer to one of their "buy to let" deals.
- My flat has a mortgage against it with Handelsbanken and I have been renting my flat omitting to get consent to let, which I am now led to believe means I am in breach of my mortgage Ts and C’s. They may have suspicions that I am not residing there. What negotiating options do I have if I fail to sell it before they become aware I am in contravention of my conditions?
- My brother and his partner currently lodge with me at my flat. After Christmas I would like to move out of the flat and in with my partner. How likely is it that I will be able to get consent to let from Handelsbanken after only having the mortgage for less than half a year?
- I intend to relocate to another property, I have been at my existing house for 18 months. Is there a minimum time to spend at a property before Handelsbanken will give a consent to let?
- How much of my loan allowance will be made available to borrow if I convert my mortgage to a consent to let with Handelsbanken?
- I have a mortgage with Handelsbanken on a three year fixed rate. I could have an opportunity for a teaching job abroad next year. Would I qualify for consent to let by Handelsbanken if I took this job abroad?
- I am intending on relocating inside the next nine months and would like to lease my property out. My interest rate is fixed with Handelsbanken. I am worried a 1% increase would be too much if that was a condition of getting consent to let
- I am enquiring as to whether there are any restrictions in getting consent to let on a leasehold property when I have a mortgage with Handelsbanken
Find out more about how flying freeholds can affect the marketability of a property.
Information to consider in conjunction with the above Handelsbanken consent to let Advice
Tax and Legal
There are numerous potential tax and legal (from restrictions on title, lease prohibitions to planning issues) implications when letting out your property. You should always seek the advice of a solicitor and accountant before letting out your property.
Insurance
Where you hold buildings and contents insurance on your property you should review it to make sure it continues to provide the cover you need. It is also important that you update your insurance provider of your change in circumstance, as failure to inform them may trigger your insurance becoming invalid. As a minimum you should ensure that you are covered for any third party liability in respect of injuries to your tenant whilst at your property
Leasehold properties
Should the tenure of your property be leasehold, the provisions in the lease may prevent you from letting or require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Co-ownership
Neglecting to advise your co-owner of your intention to let could result in them commencing legal proceedings against you. Be sure to record their consent in writing.
If you do not keep up the payments on your mortgage with Handelsbanken your property may be repossessed