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Need professional advice for your consent to let with Nedbank Private Wealth Ltd? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Nedbank consent to let: Q and A’s
- I would like to purchase a second property having recently bought a one bedroom second floor purpose built flat on residential mortgage. Planning to purchase in a few months time. I am told that I may require consent to let from Nedbank, my current mortgage provider? What is the best way to go about this and procure the permission needed.
- I moved out of my flat about five months ago but didn't get around to get a consent to let letter, primarily because the mortgage fix rate period is ending next month and I am considering a remortgage anyway. I want to ask for the letter now, is that going to open up a Pandora’s box?
- Is it correct that mortgage providers (my home loan is with Nedbank) are taking a more lenient approach towards consent to let? A broker suggested that BTL mortgages are not regulated by the FCA whereas residential mortgages are. Therefore if I switch from a standard to a BTL I am moving to a regulated product. His belief was that under the current regulation lenders are wary of letting borrowers do this, which is likely why some banks will allow borrowers apply for consent to let but not move to a BTL mortgage. Is this an accurate assessment?
- Enquiring whether Nedbank conduct any checks when applying for a residential mortgage, I'm preferably looking to rent the property out and am unsure as to whether I should apply for consent to let. How likely are they to find out if I lease the place out?
- My OH and Iwould like to let our home and buy other. Can Nedbank refuse to grant me consent to let?
- Can I get an interest only mortgage with consent to let when my current Nedbank deal runs out September 23?
- My partner and I have a mortgage with Nedbank but am told they have a policy that they refuse to grant consent to let the property to a local authority. Is this true and if so, is there a way round this?
- Nedbank - consent to let potential. Are you able to advise on the process with this lender? Do they have a minimum period prior to changing and is it possible that I would be required to make a cash injection to reduce the LTV?
Find out more about how flying freeholds can affect the marketability of a property.
Important warnings to consider in further to the above Nedbank 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
Failure to inform your insurance company of your intention to let could invalidate your insurance or leave you under-insured.This means that you could be personally liable for any claim made against you. 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
If your property is 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 restrictions are not strictly observed 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 obtain their consent in writing.
If you do not keep up the payments on your mortgage with Nedbank your property may be repossessed