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Renting flat out without telling mortgage lender


Thedelldays
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can I do this...I know I should not but could I do this.

 

basically, I am getting ready to submit my notice to leave the forces, sold my car and have just found a buyer for my flat. now, this is at the very early stage and should it fall through and I can't sell it, I will have to rent it out...however, my mortgage people, in the generosity, would charge me an extra £90pcm for their permission to rent the flat out...thieving bastards.

 

could I in fact, just rent it out without them know as the rent I get that way would cover the mortgage..?

 

cheers

Edited by Thedelldays
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can I do this...I know I should not but could I do this.

 

basically, I am getting ready to submit my notice to leave the forces, sold my car and have just found a buyer for my flat. now, this is at the very early stage and should it fall through and I can't sell it, I will have to rent it out...however, my mortgage people, in the generosity, would charge me an extra £90pcm for their permission to rent the flat out...thieving bastards.

 

could I in fact, just rent it out without them know as the rent I get that way would cover the mortgage..?

 

cheers

 

Well you could but they'll be pretty ****ed off if anything happens to your flat and they can't claim from the insurance.

You'd be in serious sh*t if they find out anyway and they probably will.

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Well you could but they'll be pretty ****ed off if anything happens to your flat and they can't claim from the insurance.

You'd be in serious sh*t if they find out anyway and they probably will.

again, how could they know..?

I never have any dealings with them unless I call them up...?

 

if it all goes wrong, just get repossessed...**** it..?

 

 

 

(joke)

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again, how could they know..?

I never have any dealings with them unless I call them up...?

 

if it all goes wrong, just get repossessed...**** it..?

 

 

 

(joke)

 

if you're going to do it make sure you get the right BTL insurance (this is probably what the extra 90£ is for)

If you don't tell them you're guilty of fraud you know.

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Just as long as the mortgage company have money coming in they don't care. I rented a house out for near on 4 years without telling them, in that time I even changed mortgages to a different company. Your problem may be the insurance, I'd definitely get landlords insurance just in case they burn the flat down. That said they may try and wriggle out of paying should they find out you don't have a buy to let mortgage but I don't know.

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99% of the time, you will be absolutely fine.

 

However, if the 1% happens, ie if something goes wrong and insurance companies get involved, then you will be ****ed.

 

Bear in mind that, contrary to what many landlords think, you have obligations as a landlord beyond just taking your tenants' cash.

 

If, for example, you have a problem with your gas/boiler, and you haven't had the correct inspection certificate issued, your insurance won't cover it.

 

If, for another example, you don't properly protect your tenants' deposit, you could be liable for 3x the amount.

 

Personally I think that sort of thing is worth £90 a month. Or, more accurately, the risk (ie potential total loss) is not sufficiently offset by the reward (£90). But ymmv.

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Why not tell the mortgage company? I rented my property in Sholing for a year without telling the mortgage company. This was just down to not getting round to writing to them.

 

I told them and nothing changed, still pay the same, and tenant still pays the mortgage for me.

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Seriously dont do this!!

 

I just rented my property out and i had to tell the mortgage company after finding out what happens if you dont. In this climate more and more people are renting current properties in order to buy a new property and the banks are up to speed on this.

 

They have new mortgages Consent to Lease which they have created to keep up with the situation and make money, basically as stated they move you onto a higher intereste rate to make money, this is what i had to do as insurances etc are not valid if you are renting out your propery without informing your lender

 

Also any good letting agency will not touch you with a barge pole if you havent told your lender

 

If they find out and they have teams investigating this now at most banks they can force you to pay the full mortgage amount as you are in breech of your terms and conditions. I would seriously think about it before doing this.

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Seriously dont do this!!

 

I just rented my property out and i had to tell the mortgage company after finding out what happens if you dont. In this climate more and more people are renting current properties in order to buy a new property and the banks are up to speed on this.

 

They have new mortgages Consent to Lease which they have created to keep up with the situation and make money, basically as stated they move you onto a higher intereste rate to make money, this is what i had to do as insurances etc are not valid if you are renting out your propery without informing your lender

 

Also any good letting agency will not touch you with a barge pole if you havent told your lender

 

If they find out and they have teams investigating this now at most banks they can force you to pay the full mortgage amount as you are in breech of your terms and conditions. I would seriously think about it before doing this.

 

Yep, we've warned him but I expect he'll just do it anyway, buoyed up by all the "been doing it for years posts" who probably don't even own a house or flat anyway.

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There is also the liability issue as a Landlord - whether formally contracted or not, you are still considered the eye of the law as I understand it - so if your boiler broke down, chucked Carbon monoxide or and killed a tennent - major jail term etc. seriously it would be seriously stupid - do it properly, get a decent letting agency involved and you have full piece of mind and cover.

 

Yes there are probably loads of folk doing this, but its why take such risks for £90?

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Basically it's breach of contract if you let the property out without permission.

 

Not all lenders load the interest rates upon being told, and the switch to gain consent is normally about £100 in many cases.

 

One other thing to bear in mind, you *could* get away with the mortgage now, but when you apply for another main residence mortgage and they find out...you're screwed.

 

It's fraud.

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Like most posters on here are saying its 100% important you do everything properly.

 

You are totally responsible for boilers these must be gas safety checked and you must have a certificate. Also from this year you must get all plug sockets checked and signed off. You also would be crazy not to take landlords insurance, get a dodgy tennant and your looking at £1000s of pounds to get them evicted if they decide they are not paying rent etc!

 

If you do rent out a property and it does go wrong and you havent covered all the bases legally you will be screwed. So to try and get away with it is a BIG risk which could have rewards but could be a massive mistake!

 

You can try and get away with anything in life but if it does come back to bite you, you will regret it.

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again, how could they know..?

I never have any dealings with them unless I call them up...?

if it all goes wrong, just get repossessed...**** it..?

 

 

 

(joke)

 

Joking aside that's the main reason you need their permission. They can't make someone else (i.e the tenant) homeless because of your debt, they would need them to sign some sort of disclaimer (can't remember the technical term) so that if necessary they can do.

 

If they want £90pcm just add that to the rent figure you had in mind. Most potential landlords underestimate what people are willing to pay rent-wise.

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