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Need professional advice for your consent to let with Bank of Scotland? 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 Bank of Scotland consent to lease
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Finding myself in an impossible situation with a Consent to Let home loan. Having sought consent to let my bank has asked me to provide them with an executed AST before they will grant permission. If I get a signed tenancy agreement would I not be breaching the terms of my existing mortgage?
- I've got an existing homeloan with Bank of Scotland approaching twenty four months and the fixed rate is about to expire. We are thinking of releasing equity out of our present address to enable us to purchase a new larger home and then rent out the existing garden flat. We have had initial advice that we should look for a new domestic mortgage with a consent to let - can you explain what this is?
- We are are looking to join the property ladder, currently renting. We want to buy a maisonette in Bexley. We want to move there, but will need to wait for a job - perhaps a couple of years. Do we have to seek a B2L loan? Would it be possible to have a domestic mortgage with Bank of Scotland, even though we won't be moving in straight away? Or could we reside there for a short period of time , then start renting it with consent to let from Bank of Scotland? I'm only interested in options that are entirely legitimate, and have no intention of contravening the provisions of the Bank of Scotland mortgage.
- I am looking for our family to move to give us all more space. We are thinking about buying another house in the near future. The house was valued at £155,00 and we have about £85k remaining on the Bank of Scotland mortgage. We would ideally like to keep this house as an investment property and let it out with consent to let. Is it possible to get a mortgage on two properties at the same time or do we first need to discharge our current mortgage?
- I took a domestic mortgage with Bank of Scotland and my circumstances have changed due to family, can I apply for consent to let. What changes will affect me?
- I have a leasehold flat. I would like remortgage with Bank of Scotland and either change to buy to let or consent to let. I'm still within the redemption penalty period so not sure if I will be liable to pay that?
- I am trying to investigate if it is possible to get a consent to let home loan with Bank of Scotland rather than a buy to let mortgage
- Me and my husband have an annexe in our garden. Do we need consent to let this from Bank of Scotland? If so, what is the process if I wish to switch my mortgage to consent to let?
Find out more about how flying freeholds can affect the marketability of a property.
Important warnings to consider in supplemental the above Bank of Scotland consent to let information
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 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 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 lease may prohibit 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
Failure 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.
Your property may be repossessed if you do not keep up repayments on your mortgage with Bank of Scotland