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Need professional advice for your consent to let with MPowered Mortgages? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
MPowered Mortgages consent to let: Q and A’s
- I have a MPowered Mortgages mortgage on an apartment I own, in Greenwich. This year, due to a change in my circumstances I decided to rent out the apartment, and rent a house in a different area within same loc. The personal situation that altered is that my partner moved in, and the flat is not large enough for our needs. I would rather not sell the flat because the current market value is 20% less than when I purchased the property in 2007. I applied to MPowered Mortgages for a consent to let which was refused because they determined that my intention was to invest in the flat. The whole process was very stressful and frustrating. There is a sense of urgencybecause there is already a prospective tenant waiting for this consent to let and may look elsewhere.Please call me to discuss
- We have just sorted our rates for another fixed five years with MPowered Mortgages. Subsequently, I attended an interview and basically I accepted the job offer in Lambeth. I'm going to rent a small flat for the family in Hillingdon as we don't want to sell the house and moreover we might come back within a couple of years.... We really don't know whether it will work out. We have contacted MPowered Mortgages but we would appreciate your point of view please. Is it possible to have a consent to let in that case as we secured a fixed 5 years rate we would not want to lose this rate.
- My OH and I are just about to receive a mortgage offer from MPowered Mortgages for a garden flat. I have applied through Right to Buy. It is a 20 year mortgage. I am curious as to what is the main criteria MPowered Mortgages adopt in order to grant customers consent to let? Is consent to let based on the rental yield of a property?
- Is it possible that mortgage companies (my home loan is with MPowered Mortgages) are adopting a more lenient approach towards consent to let? A mortgage adviser suggested that BTL mortgages are not regulated by the FCA whereas residential mortgages are. Therefore if I move from a residential to a Buy to let I am moving to a regulated product. He said that under the current regulation banks are wary of letting borrowers do this, which may explain why some lenders will allow borrowers have consent to let but not swap to a BTL mortgage. Is he right?
- My OH and I have already been told to write a letter to MPowered Mortgages to obtain consent to let, I'm just trying to find some guidelines on the letter? What I should or shouldn't include?
- My husband and I are applying to change mortgage provider to MPowered Mortgages for a fixed rate but the likelihood is that I will need to rent the apartment out for approximately one year. Do MPowered Mortgages consent to let on fixed rate home loans and if so, what are the costs.
- I may potentially need consent to let from MPowered Mortgages in the future with work. I am just exploring what the options would be if this was the case. Is there a limit on how long you can let out a property with consent?
- One year into a mortgage with MPowered Mortgages due to work reasons need to relocate. Is it possible to get buy to let or consent to let.
Find out more about how flying freeholds can affect the marketability of a property.
Caveats to be read in supplemental the above MPowered Mortgages 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 MPowered Mortgages 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 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 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.
If you do not keep up the payments on your mortgage with MPowered Mortgages your property may be repossessed