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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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I am a FTB interested in a detached house in Bank of Scotland. I have a good size deposit with a mortgage from Bank of Scotland. My dilemma is that my partner has a flat in Nuneaton and I can foresee myself moving in next year, when I would want 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?
- My boyfriend and I (joint owner) are considering refinancing with Bank of Scotland. I was doing some research concerning consent to let from Bank of Scotland to understand the rules around potentially renting our existing flat out (probably in a year or 2) if we moved away. The flat in question was a first-time purchase for us about three years ago. Currently we are living there.
- My house had been tenanted for three years from 2010-2013 while living abroad. I have a letter dated June 2010 from the mortgage company granting consent to let. In the letter it clearly states that the consent to let is valid for "the remaining term of the mortgage". I have not refinanced since the letter was issued. I now plan to move house and rent out my existing house. However, my financial advisor has suggested that the 2010 consent to let letter may not be acceptable to the new lender Bank of Scotland for the property I wish to purchase.Can this be right
- I am looking for some preliminary insight as to whether consent to let is a sensible proposition. I bought my apartment 8 months ago by porting an existing Bank of Scotland mortgage product. My fixed rate ended four months ago. I'm currently considering moving in with a new partner who has his own property and mortgage also with Bank of Scotland, which I would not seek to be added to. I don't wish to sell my property yet because I'm unsure of whether the new move will work out. I don't want to move to a B2L mortgage yet for 2 reasons: 1) I need to find out whether letting my property is a feasible option for myself and 2) I need to come up with additional capital to meet the 65% LTV ratio required for a BTL mortgage. It would be preferable to get a consent to let from Bank of Scotland for 1-2 years in order to be more secure in becoming a possible landlord and to generate the capital. If at the end of the consent to let period I was unsure I would probably either sell my property or, depending on the new relationship working out, move back to it.
- Do you know whether Bank of Scotland will accept rental income on consent to let for affordability purposes or does it need to be BTL ? Would Bank of Scotland let me raise capital based on the rental income ?
- I currently have my mortgage with Bank of Scotland and have been for the past twenty months and I am interested in finding out some more information about the possibility of getting 'consent to let’.
- I currently have a residential mortgage with Bank of Scotland and plan on letting due to work being based in Bristol. In asking for consent to let from Bank of Scotland do I run the risk of them forcing me to change deal to BTL
- We've spoken to someone at Bank of Scotland about changing our current mortgage to consent to let (the current fixed rate comes to an end in spring next year). Can I just confirm that I need to send a letter setting out our change in circumstance to Bank of Scotland? Where do I need to post it to?
Find out more about how flying freeholds can affect the marketability of a property.
Information to consider in conjunction with the above Bank of Scotland 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
If you hold buildings and contents insurance on your property you should review it to make sure it continues to provide the cover you need. It is also important that you update your insurance provider of your change in circumstance, as failure to notify them could result in your insurance becoming null and void. 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 conditions are not complied with 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 commencing legal proceedings against you. Be sure to record their consent in writing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Bank of Scotland