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Need professional advice for your consent to let with Hodge Life? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Common questions relating to Hodge Life consent to lease
- My husband and I have a fixed rate mortgage with Hodge Life. This has been in place since 2006. We are potentially letting out our property and renting in a village near our son's school until a suitable property becomes available to buy. Do Hodge Life usually issue consent to let and do they apply an increase to the mortgage rate?
- A year ago my building society (not Hodge Life) issued me with consent to let. This was subject to a provision that every half year they would add a charge of 0.5% of the outstanding mortgage amount. Having the first couple of payments they have omitted to make the charge in recent months. Should I be worried that this means that my consent to let has been revoked.
- I am looking for some preliminary advice as to whether consent to let is a feasible option. I completed the purchase of my apartment 7 months ago by transferring an existing Hodge Life mortgage product. My fixed rate ended 4 months ago. I'm currently considering moving in with a new partner who has his own property and mortgage also with Hodge Life, which I would not seek to be added to. I don't wish to sell my property yet because I'm unsure of whether the new move will work out. I don't want to transfer to a buy to let mortgage yet for 2 reasons: 1) I need to find out whether letting my property is a feasible option for myself and 2) I need to raise additional capital to satisfy the 65% LTV ratio required for a buy to let mortgage. Ideally I would like to obtain consent to let from Hodge Life for a couple of years in order to be more secure in becoming a possible landlord and to raise the capital. If at the end of the consent to let period I was unsure I would probably either sell my property or, depending on the new relationship working out, reoccupy it.
- I intend to rent our existing property out shortly after we move. I will apply for consent to let from Hodge Life. At the moment the apartment is in my name but I am a higher rate tax payer. Is it best to do a Transfer of Equity to her or can I do a Declaration of Trust?
- We have tenants ready to move in and I have mortgage offer from Hodge Life on new house on condition of consent to let for original house. How long should it take to receive letter once I send back a completed application with cheque.
- I would like to find out more about how to get consent to let on a property. In particular what is the procedure for consent to let if you have a residential mortgage with Hodge Life
- I am hoping to fix my residential mortgage with Hodge Life but as a result of my job I may have to live abroad for a couple of years. Will Hodge Life allow and give consent to let and will any penalties be applied in such circumstances
- Is consent to let required from Hodge Life if I am intending to reside in the property myself for three months of the year? Furthermore if I receive consent to let for a period of time, say up to twelve months, what happens thereafter.
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Caveats to be read in further to the above Hodge Life consent to let information
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
One thing to remember when arranging a consent to let mortgage with Hodge Life is to switch your existing residential buildings insurance policy to a landlords buildings insurance policy. The insurance premium is marginally more expensive but if you don’t switch your insurance and you need to make a claim then you won’t be covered on your regular residential buildings insurance. 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 lease may prohibit you from letting or require that you to have a license to do so from 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 taking legal action against you. Be sure to record their consent in writing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Hodge Life