Need Help?
Need professional advice for your consent to let with Scottish Building Society? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
Top Five Questions relating to Scottish Building Society consent to lease
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I am about to join the property ladder looking to purchase a terraced house in Scottish Building Society. I have a good size deposit with a mortgage from Scottish Building Society. My predicament is that my girlfriend has a apartment in Nuneaton and I hope to be moving in next year, at which point I would want to let out my property. I I know that consent to let is needed but it does not sound like a guaranteed option. Is there any advice you can impart?
- I purchased a flat in 2014 with a Scottish Building Society loan but now wish to sublet the property. I want to find a larger property as our kids are growing up and a 1 bedroom flat is too small for us any longer - furthermore if I rent it out I can build up some savings. Will Scottish Building Society grant consent to let?
- I am with Scottish Building Society and just had to apply for consent to let, but wondered if they impose any requirements on the level of rental to be received?
- My understanding is that this is a contravention of Scottish Building Society mortgage policy if I lease out my flat having indicated that I intend to live there. The intention is to redeem the home loan after five years, by which time the property will be mortgage free, meaning I no longer require any consent to let. Scottish Building Society advised me I can overpay as much as I like during the agreement. I have someone who is interested in renting the property. What checks do Scottish Building Society do and what are the chances that they are likely to do this? What are the ramifications of not seeking consent to let? From what I have read there is a possibility of Scottish Building Society levying a penalty
- Were we to ask for a consent to let letter from Scottish Building Society will we be forced to convert to buy to let mortgage? Our mortgage is with Scottish Building Society and as houses are not selling at the mo and we have seen one we like we were going to rent our home out in order to acquire the new and dispose of this one if the local market picks up.
- I'm thinking about letting my property on a domestic mortgage with Scottish Building Society what is the procedure for getting consent to let?
- I am after more information regarding consent to let home loans, potentially transferring our existing mortgage with Scottish Building Society across to a consent to let one.
- Please can you provide me with advice as to how to go about gaining consent to let from Scottish Building Society and what, if any, fees apply.
Find out more about how flying freeholds can affect the marketability of a property.
General Advice to read in further to the above Scottish Building Society 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
One thing to remember when arranging a consent to let mortgage with Scottish Building Society 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
Omitting 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 Scottish Building Society your property may be repossessed