Need professional advice for your consent to let with The Chorley & District Building Society? There are various implications when it comes to letting out your property with an existing residential mortgage - you should seek professional assistance.
I have a homeowner mortgage over my property in loc and intend to move to country for three years. During this time frame it makes financial sense to lease out my house. My bank has declined to grant me consent to let. It’s hardly ideal to move to a buy to let loan as it’s only for a limited time-frame that I am going away for.
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.
One thing to remember when arranging a consent to let mortgage with The Chorley & District 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 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 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.