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Need professional advice for your consent to let with Investec Bank plc? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Top Five Questions relating to Investec consent to lease
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A friend of mine suggested that this Christmas I rent out my cottage and generate some income while I am on holiday. It’s only for four weeks. Do I need consent to let from Investec?
- My twin intends to rent out his flat out without consent to let from his mortgage lender Investec. He has been on an interest only loan for about six years now. Outstanding amount due is £99k, having bought the apartment for around £110k. If he lets the flat out privately, exactly what sanctions is he likely to face?
- We have a fixed rate mortgage with Investec for two years and have been living in the house for just over eighteen months. Due a job opportunity abroad I need to relocate so I would like to rent the place out. How can I get consent to let from Investec?
- Is it right that lenders (my home loan is with Investec) may start taking a more accommodating approach towards consent to let? A mortgage adviser suggested that BTL mortgages are not regulated by the FCA whereas residential mortgages are. So if I transfer from a homeowner to a Buy to let I am moving to a regulated product. He said that under the current regulation banks are wary of letting customers do this, which may explain why some banks will allow borrowers have consent to let but not transfer to a BTL product. Is he correct?
- As of today I have a mortgage with Investec. I am considering renting and buying another property but this is all new to me. What is the procedure for consent to let?
- I took a domestic mortgage with Investec - about 40% equity. I am considering relocating due to a promotion and enquiring whether consent to let would be given so I could let out the house?
- I may be looking to lease out my property and wondered what I would need to do to obtain consent to let by Investec. There is a possibility that I might be moving abroad for nine months.
- We need to rent out my apartment to be nearer to my son’s uni and look after of my mother. How long will the consent to let take to get from Investec? a month?
Find out more about how flying freeholds can affect the marketability of a property.
Caveats to be read in further to the above Investec 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 Investec 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 standard 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
If your property is leasehold, the lease may prohibit you from letting or require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Co-ownership
Omitting to inform 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.
If you do not keep up the payments on your mortgage with Investec your property may be repossessed