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Need professional advice for your consent to let with Coutts? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Questions and Answers: Coutts & Co consent to let
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Will Coutts & Co invoke a right to put a loading on my interest rate on a homeowner mortgage where the lender has granted Consent to Let at any time, onto ‘rates equivalent to their Buy to Let loans'?
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I have been letting out my flat with "consent to let" from Coutts & Co on a residential mortgage for the previous two years. Coutts & Co have advised of their intention of revoking consent to let if we do not swap to one of their "buy to let" deals.
- Under what situations will consent to let for a property be granted by Coutts & Co? For what period of time do you have to have had ownership of the property before consent to let can be obtained from Coutts & Co? In order to give you some perspective:Our home is a very small mid terrace house which is too small for us, my husband is also unwell and we are far away from family who could offer us a bit of relief, in the form of babysitting. I am interested in procuring consent to let in the first instance in order to put a tenant in it to offset the expense of the Coutts & Co mortgage.
- My twin and his partner currently lodge with me at my flat. This Spring I would like to move out of the property and in with my partner. Is it possible to get consent to let from Coutts & Co after only having the mortgage for less than half a year?
- What is the longest period that Coutts & Co is willing to grant me the Consent To Let for?
- I am considering relocating with work and would need to rent my property out. I have a mortgage with Coutts & Co. My property is worth approx £200k and owe £48k on it. How likely is it that Coutts & Co increase my mortgage rate?
- I am looking at some alternative lifestyle. I have a Coutts & Co mortgage, if I become a non-UK resident but wish to rent my UK house, do I need to get consent to let from Coutts & Co to do this ?
- I have a homeowner homeloan with Coutts & Co. I acquired the property in November two years ago. How difficult will it be to get consent to let.
Find out more about how flying freeholds can affect the marketability of a property.
Information to consider in supporting the above Coutts & Co 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 Coutts & Co 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
Leasehold properties
Should the tenure of your property be leasehold, the provisions in the lease may prevent you from letting or require that you to have a license to do so from the freeholder. If such terms are not adhered to you may be in violation of the lease. This could trigger the freeholder commencing forfeiture proceedings.
Co-ownership
Neglecting to advise 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 Coutts & Co