Need professional advice for your consent to let with The Royal Bank of Scotland plc One Account? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
I am about to join the property ladder hoping to complete on a terraced house in RBS (One Account). I have a good size deposit and expect a mortgage from RBS (One Account). My dilemma is that my fiancee inherited a flat in Slough and I can foresee myself moving in next year, at which point I would have to let out my house. I understand that consent to let is required but it does not sound like a positive outcome is assured. Is there any advice you can impart?
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 RBS (One Account) 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 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 trigger the freeholder commencing forfeiture proceedings.
Omitting to inform your co-owner of your intention to let could result in them commencing legal proceedings against you. Be sure to record their consent in writing.