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Need professional advice for your consent to let with Ipswich Building Society? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Ipswich Building Society consent to let: Q and A’s
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I am about to join the property ladder hoping to complete on a 2 bedroom house in Ipswich Building Society. I have a good size deposit and expect a mortgage from Ipswich Building Society. My concern is that my girlfriend has a apartment in Nuneaton and I anticipate moving in next year, when I would want to let out my property. I understand that consent to let is required but it does not sound like there is any certainty. Is there any advice you can impart?
- I wish to let my existing residence and want to buy a larger house for the family. I have a two year fixed mortgage with Ipswich Building Society. On the basis I get the consent to let as I understand banks are more than likely to push me towards getting BTL mortgage when the fixed term is finished. Could I refinance after a couple of years with an alternative lender? What connotations does that have apart from the higher rates - would I need a greater equity portion in the property too ie lower ltv?
- I rented my house out for three years from 2009-2012 while working overseas. I have a letter dated June 2010 from the mortgage company granting consent to let. In the letter it explicitly states that the consent to let is valid for "the remaining term of the mortgage". I have not remortgaged since the letter was sent. I now plan to move house and rent out my existing house. However, my mortgage advisor has suggested that the 2010 consent to let letter may not be sufficient for the new lender Ipswich Building Society for the house I wish to buy.Can this be correct
- My mortgage is with Ipswich Building Society and wonder if I am required to notify them if we no longer reside in the property. I fear that they could increase the interest rate if we move and find a tenant but it's not very apparent what the increase would be. Should I decide to lease my house out and apply for consent to let in what way would the payments change?
- Is it possible to negotiate a consent to let from Ipswich Building Society if I have a current mortgage which has been in place for seven years?
- Is there flexibility in the accepted equity ration before transferring from an existing Ipswich Building Society mortgage to a consent to let?
- Is consent to let a cost efficient way of becoming a landlord? Isn't this a loophole for some people to exploit?
- I have a mortgage with Ipswich Building Society. I am thinking of moving out and renting out my house. Do I need a consent to let ?
Find out more about how flying freeholds can affect the marketability of a property.
Important warnings to consider in further to the above Ipswich Building Society 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
One thing to remember when arranging a consent to let mortgage with Ipswich Building Society 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
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 breach of your covenants under the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Co-ownership
Omitting 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 Ipswich Building Society your property may be repossessed