Need professional advice for your consent to let with Newbury Mortgage Services Ltd? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Is consent to lease required from Newbury Mortgage Services or can I lease out my basement flat without telling Newbury Mortgage Services and having to convert to a buy-to-let mortgage?
Doing everything by the book I’ve been leasing out my house with "consent to let" from Newbury Mortgage Services on a residential mortgage for the last three years. Newbury Mortgage Services have now advised that they are withdrawing their consent to let if we do not switch to one of their "buy to let" mortgages.
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.
One thing to remember when arranging a consent to let mortgage with Newbury Mortgage Services 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
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 terms are not adhered to you may be in violation of your covenants under the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Omitting 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.