Need professional advice for your consent to let with The Royal Bank of Scotland plc? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
I have a regular mortgage over my home in loc and am due to relocate to country for three years. During this period it would be ideal if I could lease out my house. My lender refuses to issue a consent to let. I am not inclined to transfer to a buy to let mortgage as it’s only for a limited time-frame that I am going away for.
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.
One thing to remember when arranging a consent to let mortgage with Royal Bank of Scotland 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
Should the tenure of your property be 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.
Neglecting to inform your co-owner of your intention to let could result in them taking legal action against you. Be sure to record their consent in writing.