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Need professional advice for your consent to let with Pepper Money? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Pepper Money consent to let: Q and A’s
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We've been renting my wife's old house out with "consent to let" from Pepper Money on a homeowner mortgage for the past 24 months. Pepper Money have just written withdrawing their consent to let if we do not move across to one of their "buy to let" products.
- I need to switch my domestic mortgage with Pepper Money to a consent to let and looking for some help... I acquired my first property in London in 2009. After a career opportunity I moved to Dublin, and a few months ago got a residential joint-mortgage with my partner. I am inclined to stay with Pepper Money and seek consent to let rather than attempt to apply for a new mortgage elsewhere, but if Pepper Money refuse what lenders can I approach.
- My partner and I (co-owners) are considering remortgaging with Pepper Money. I was doing some research concerning consent to let from Pepper Money to understand the rules around potentially leasing our current property out (probably in a in a couple of years time) if we moved away. The property in question was a first-time purchase for us about three years ago. We are living there at the moment.
- Is it right that mortgage companies (my home loan is with Pepper Money) have changed tune and are now taking a more relaxed approach towards consent to let? A mortgage adviser suggested that Buy to let mortgages are not regulated by the FCA whereas residential mortgages are. So if I transfer from a owner-occupier to a BTL I am moving to a regulated product. His belief was that under the current regulation banks are wary of letting customers do this, which is likely why some lenders will allow customers have consent to let but not transfer to a BTL mortgage. Is he right?
- Do you specifically deal with enquiries regarding Pepper Money or all of them?
- I am already renting out my property but may have sussed that I am not living there. I have five months remaining on my fixed rate. Is it simple to get consent to let from Pepper Money. Is it just a quick phone call, pay the charge and that's it?
- Is there leeway in the accepted equity ration before transferring from a current Pepper Money mortgage to a consent to let?
- I hope you can help What do my wife and I need to do to get consent to let from Pepper Money? And what are the charges?
Find out more about how flying freeholds can affect the marketability of a property.
General Advice to read in supporting the above Pepper Money 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
Omitting 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 lease may prohibit you from letting or require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of your covenants under the lease. This could potentially result in the freeholder commencing forfeiture proceedings.
Co-ownership
Omitting to advise your co-owner of your intention to let could result in them taking legal action against you. Be sure to obtain their consent in writing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Pepper Money