How do I approach my licence application and mortgage lender for consent?

by Readers Question

11:08 AM, 1st February 2017
About 2 years ago

How do I approach my licence application and mortgage lender for consent?

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How do I approach my licence application and mortgage lender for consent?

I bought a flat in London(residential mortgage), whilst working as contractor close to Brighton. The idea was to move to London as and when the contract finishes.what should

I lived in my new property for initial three months, but had to move back to Brighton as I was having few health issues and the commute was taking toll on my health and also my contract was renewed.

I started to let my property from the 4th month onwards (I know its not ethical but I was desperate).

Recently I received a letter from the council stating I require a licence (privately rented property licence) to rent the property. In the licence form I was asked to provide the details of all the interested parties i.e; my details,insurance info, planning permissions info, The current tenant details, the estate agent(through which the property is let) and the mortgage company details.

I am happy to pay the licence fee and provide all the details except the mortgage lender’s details. My lender provides the option to apply(online) for a consent to let after the initial 6 months (I am only few weeks away from 6months). I was anyways going to apply for a consent to let but my council has given me only 10 days to apply for licence.

Can someone suggest me on what should be the wise thing to do:

1) If I provide the details of my mortgage lender to the council, would the mortgage lender eventually know it?

2) When I approach my mortgage lender should I say that I have already let the property or should I just say that I require a consent to let. ( I want to be honest and upfront but at the same time dont want my mortage to be converted to buy-to-let product).

NB: I am paying rent at my current place which is few hundreds less than my mortgage EMI.

Please help.

Ravi



Comments

Neil Patterson

11:12 AM, 1st February 2017
About 2 years ago

Hi Ravi,

The only thing you can really do now is be upfront and honest with everyone and explain as you have done here and apologise.

If you try to mislead a lender or the council now you will get caught out and make the situation worse.

The consent to let is supposed to be requested before you rent the property out as permission to do so. Waiting 6 months is not really going to help as the horse has already bolted.

Larry Sweeney

21:52 PM, 1st February 2017
About 2 years ago

Hi Ravi,
I understand your position. The bottom line is that the Finance house could call in the loan.
I personally would go through the Council Procedure and Licence conditions with a fine tooth comb. I did this in Liverpool and discovered that their scheme is riddled with flaws. If the scheme is indeed non compliant then this could buy you time while you resolve the mortgage Issue.
Good Luck.

Heather G.

12:17 PM, 2nd February 2017
About 2 years ago

I'm curious why you don't want to go onto a Buy To Let product. If you're letting the property I would imagine that either your lender will insist on you transferring the resi to BTL, or, at the very least, will increase your mortgage interest payments. I would suggest you call the lender and give them the story and ask how they think you should proceed. Depending on the lender, I think generally if you're up front and pleasant and ask for their help & advice, they're often more flexible.
Best of luck!

Gary Dully

7:56 AM, 5th February 2017
About 2 years ago

I agree with the others.

As an alternative.....
Do the license application and fill in the form.

If the lender is contacted, which may not happen, then you beg for forgiveness and consent to let.

It's an alternative to the other responses, but unless you get a license your stewed anyway.


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