Need Help?
Need professional advice for your consent to let with Reliance Bank Ltd? 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 Reliance Bank consent to lease
- I appreciate the capital gains tax financial repercussions if any of switching a Reliance Bank mortgage to consent to let, but what about the ongoing rental earnings vs outgoings? Say I changed my former owned garden flat into CTL and vacated and pay rent elsewhere. Is there any way to expense the rent I am paying from the rental revenue?
- I'm looking to remortgage our old studio flat, currently occupied with tenants with consent to let from Reliance Bank, onto a BTL rate as we are unlikely to be moving back into it now since we have our family home. So, I'm assuming I need a specialist broker for this and I am not really conversant with what my options are. Can you recommend a good broker service specialising in BTL?
- As we are relocating and unable to sell our property, we are mulling over renting it out. Am I required to advise Reliance Bank? I have a hunch that Reliance Bank might change our terms. I was hoping that if I continued making my monthly payments it shouldn't be an issue, but am now worried about insurance implications if I have let my property out on the sly. Any advice?
- My partner and I currently live in Hong Kong and leasing out our flat in the UK. This was unplanned but an opportunity presented itself and we took it. The rental income is insufficient to cover the mortgage so we transfer money each month to cover the difference. Last week I got a letter in the mail from our lender informing me that because the property is being let out and has been for nearly four years we will have to pay 1.5% interest on top of our current mortgage rate. We could sell the apartment but this will not be easy as I am so far away. Could we remortgage with Reliance Bank and get consent to let?
- I was just curious as to whether Reliance Bank would issue me with consent to let and what kind of fees, penalties and rate increase etc
- My Reliance Bank mortgage is coming up for renewal. We would like to apply for a new residential mortgage and then seek consent-to-let. Is this possible? We don't use the house much now that our kids have grown up, and would be better used as a rental.
- Am I required to negotiate consent to let if I let to a family member (in my situation my father now lives there and contributes towards the Reliance Bank mortgage)?
- Last month I bought a property with 10% deposit for personal uses. A homeloan was taken with Reliance Bank. But my circumstances have now changed. I am being transferred abroad. Am I able to obtain consent to let from Reliance Bank and put the property up for rent?
Find out more about how flying freeholds can affect the marketability of a property.
Important warnings to consider in in addition to the above Reliance Bank consent to let Advice
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
If 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 could 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
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 conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Co-ownership
Failure to inform 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 Reliance Bank your property may be repossessed