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Need professional advice for your consent to let with Capital Home Loans? 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 Capital Home Loans consent to lease
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Doing everything by the book I’ve been leasing out my house with "consent to let" from Capital Home Loans on a standard mortgage for the previous two years. Capital Home Loans have now advised that they are withdrawing their consent to let unless we switch to one of their "buy to let" mortgages.
- I have just come off a call with Capital Home Loans and they tell me that they discovered that I have been renting the three bedroom ground floor purpose built maisonette even though it is on a domestic mortgage. I moved out two years ago for work reasons, was unable to sell and so had little option but to rent out my property. Do you know what the connotations will be for me not obtaining consent to let?
- I cannot locate the form to download "consent to let" on the Capital Home Loans website. Could you please send me the URL to do it? Many thanks.
- We have a flat in Merton which we acquired as a new-build approximately eight years ago. As the family is growing we are looking for more space. We've found a property in Redbridge that we would like to buy and want to keep the flat as an investment to rent out. The mortgage is with Capital Home Loans and we've found a tenant who will pay rent which more than covers the monthly mortgage amount. My query is, can we keep the repayment mortgage with Capital Home Loans so we effectively paying off our loan on the flat or do we have to move it to a buy-to-let mortgage?
- My wife and I are planning to ask Capital Home Loans for consent to let out our property in Lambeth. We are relocating overseas for 3 years and would like to to rent out the property. I failed to check this out when we got the Capital Home Loans mortgage, and that was due to the fact that we never anticipated an opportunity like this would come up so was planning on occupying the property.
- I have a mortgage with Capital Home Loans and am considering whether to sell or rent in the short term but don't have the equity for a buy to let mortgage at this stage. How feasible are consent to let options currently?
- Last month purchased a ground floor flat in Redbridge. I am a FTB. I am moving Ireland next month, can I get consent to let from my lender Capital Home Loans or do need to wait for at least 6 months?
- I currently have a residential mortgage with Capital Home Loans and plan on letting due to work being based in Bristol. In seeking consent to let from Capital Home Loans do I run the risk of them forcing me to change deal to BTL
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General Advice to read in conjunction with the above Capital Home Loans consent to let Questions and Answers
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 Capital Home Loans 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
Should the tenure of your property be leasehold, the provisions in the lease may prevent you from letting or require that you to have a license to do so from 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 advise your co-owner of your intention to let could result in them commencing legal proceedings against you. Be sure to obtain their consent in writing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Capital Home Loans