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Need professional advice for your consent to let with Paragon Mortgages Ltd? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Sample questions relating to Paragon Mortgages consent to let
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We've been renting my wife's old house out with "consent to let" from Paragon Mortgages on a regular mortgage for the last three years. Paragon Mortgages have just written retracting their consent to let if we do not swap to one of their "buy to let" mortgages.
- I was hoping you could please give me some advice on what the process is for applying for content to let, what do I need to do. I am thinking about taking a Paragon Mortgages mortgage on a £200,000 house later this year. The aim would be to hold the house as a second home but I need to consider what options are available to me to let the property in the future. If our circumstances were to change the house would either be sold or rented.
- My partner and I (joint owner) are thinking of transferring our mortgage to Paragon Mortgages. I was conducting some research concerning consent to let from Paragon Mortgages to understand the rules around potentially leasing our current flat out (probably in a in a couple of years time) if we moved away. The apartment in question was a first-time purchase for us about three years ago. Currently we are living there.
- Me and my fiance have a fixed mortgage with Paragon Mortgages (with a little over eighteen months remaining) but due to redundancy want to move away from NW London (actually to a new job in Belgium) and so want to rent the property out. We are keen to avoid the expense of a repayment charge and understand that some lenders are willing to give this 'consent'...what is the approach taken by Paragon Mortgages?
- Will Paragon Mortgages want to know why I am applying for consent to let? Is it wise to inform them of my possible relocation abroad?
- Just wondering if I would be able to get consent to let from Paragon Mortgages enabling me to move back to my mum and dad for a year or two and conserve some cash on the lease extension for my property?
- I would like to know if I have a domestic mortgage with Paragon Mortgages and decide to rent it out, does the rate increase and are there any additional charges for seeking consent to let.
- My wife and I took out a mortgage with Paragon Mortgages a few months ago and although it's only a possibility we may have to relocate around next September or October and would like to be able to let our property out. Is this possible with a non-commercial mortgage?
Find out more about how flying freeholds can affect the marketability of a property.
Important warnings to consider in further to the above Paragon Mortgages consent to let Questions and Answers
Tax and Legal
There may be various 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 Paragon Mortgages 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
If your property is leasehold, the provisions in the lease may prevent you from letting or require that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Co-ownership
Omitting 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Paragon Mortgages