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Need professional advice for your consent to let with Pepper Money? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Pepper Money consent to let: Q and A’s
- I have a Pepper Money mortgage on an apartment I own, in Sutton. This year, resulting from a change in my circumstances I decided to rent out this flat, and rent a house in a different area within same loc. The state of affairs that altered is that my partner moved in, and the flat is too small for us. I would rather not dispose of the flat because the current market value is 15% less than the market value when I purchased the property eight years ago. I applied to Pepper Money for a consent to let which was refused because they felt that my intention was to invest in the flat. Any guidance would be greatly appreciated, as this is really stressing me out. The matter is urgentas I have a prospective tenant waiting for this consent to let and could withdraw.Many thanks
- My boyfriend and I (joint owner) are in the process of transferring our mortgage to Pepper Money. I was doing some research concerning consent to let from Pepper Money to understand the rules around potentially leasing our existing property out (probably in a in a couple of years time) if we moved away. The flat in question was a first-time purchase for us about two years ago. Currently we are living there.
- I have a fixed mortgage with Pepper Money (with a little over one year remaining) but due to redundancy want to move away from NW London (actually to a new job in France) and so wish to lease the property out. We don't want to have the expense of the penalty cancellation of existing mortgage and understand that some lenders are content to grant this 'consent'...what is the approach adopted by Pepper Money?
- Need some advice concerning leasing a property and consent to let. I plan to move in with my fiance. The local authority would like to rent my flat for five year commitment with rent being paid and maintenance. The mortgage is with Pepper Money. Please advice
- I have a mortgage with Pepper Money on a 2 year fixed term contract. I may have an opportunity for a teaching job overseas next year. Am I eligible for consent to let via Pepper Money were I to accept this job abroad?
- I have a residential mortgage with Pepper Money, and I would like to rent the flat out, until I decide whether to sell or hold on to it as an investment. At the moment I am on the standard variable rate. Will I need to remortgage? I.E. buy to let?
- I am already renting out my property but may have sussed what has been going on. I have five months remaining on my fixed rate. How easy is it to get consent to let from Pepper Money. Is it just a five minute phone call, pay the charge and that's it?
- Do Pepper Money respond negatively to requests for consent to let? I am just considering this as an option if I move home in the coming months
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Information to consider in supplemental the above Pepper Money 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 Pepper Money 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 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 the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Co-ownership
Failure to advise your co-owner of your intention to let could result in them taking legal action against you. Be sure to obtain their consent in writing.
If you do not keep up the payments on your mortgage with Pepper Money your property may be repossessed