Licensing requires mortgage account numbers?

by Readers Question

13:18 PM, 30th October 2018
About 9 months ago

Licensing requires mortgage account numbers?

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Licensing requires mortgage account numbers?

I would just like to gauge some thoughts please on property licensing for buy to let landlords. The council where the majority of my rental properties are have introduced licensing for landlords.

Now in theory I am not against this, as I have seen some of the states of the properties that get let out, as an ex EPC provider, I have been in some truly shocking properties that shouldn’t be let to a dog.

And if licensing improves standards then I am for this, however for my council which is Sefton in Merseyside, as part of the licensing you have to provide the details of your mortgage lender and account number.

I can’t see any reason why the local council needs my mortgage account number at all.

I have no problem complying to property standards, but why should I supply my account details to the local council.

I spoke to my accountant regarding this, and she was in agreement with regard to why would the local council need my mortgage details to provide a licence, it doesn’t make sense, and could be part of a wider link up with HMRC for tax purposes.

Has anyone came across this before with regard to supplying mortgage account details for licensing.

Would love to know your thoughts.

Cheers

John



Comments

blair

11:32 AM, 1st November 2018
About 9 months ago

Brent also asked for this I just left it blank. I read the Act some time ago and I don't recall it going into detail into what the Council should require before licensing a property.

Any Council is supposed to consult before intruding a scheme or renewing it every five years.

In the past landlords should to write to the mortgagee if there were arrears or anything and try to get them to pay or help force the mortgagor to pay. A law was introduced that there has to be a judgement for the arrears before the mortgagee can get involved. A landlord tried it on me. The bank wrote to me I told them to keep out of the dispute - they did

MasterG

11:46 AM, 1st November 2018
About 9 months ago

In Sefton's own risk assessment, one of the potential risks considered is 'Some financial institutions may not lend to landlords across areas where licensing is in place'. The risk is considered low, but the mitigating measure is interesting. 'Most landlords will have a mortgage. A mortgage company cannot prevent a property being licensed on the grounds that it doesn't wish it to have one.' All well and good until the landlord wishes to remortgage with the same lender. It is also in Sefton's criteria that you advise the mortgage company of your intention to apply for a license. I'm assuming that there will be a declaration on the application that all the information you have provided is true to the best of your knowledge, so putting n/a may not be the best course of action.

David Lawrenson

12:03 PM, 1st November 2018
About 9 months ago

Quite bizarre request.
As another poster has suggested... put NA - could mean not applicable or not available (i.e. the info is not available to you right now)
If you were in breach of mortgage Ts and Cs, what business is it of the local authority - and anyway, would they be able to discuss your arrangements with your lender anyway. Seems to me this is pushing the boundary of the GDPR rules

David Lawrenson
http://www.LettingFocus.com
Private Rented Sector Consultancy

richard Gardner

15:28 PM, 1st November 2018
About 9 months ago

How do you know when your council introduce''s licences?

Martin Thomas

19:15 PM, 1st November 2018
About 9 months ago

Reply to the comment left by richard Gardner at 01/11/2018 - 15:28
The council is supposed to 'consult' about their proposals - advertise locally but after all of that, landlords are supposed to be mindreaders!!

John Walker

13:36 PM, 3rd November 2018
About 9 months ago

My properties are all in Powys, where there was a licensing scheme in only one small town. I have recently been advised the licensing scheme there has not been renewed from 2016, and there is no appetite to extend a scheme to other parts of the county, which covers a large part of Wales. Why are other areas in England still adopting this process?

Luke P

13:41 PM, 3rd November 2018
About 9 months ago

Reply to the comment left by John Walker at 03/11/2018 - 13:36
Because each individual Council believes is to be the Golden Goose when in fact it is administratively massive to implement and only figure that out once they’ve tried it.

john lloyd

12:47 PM, 5th November 2018
About 8 months ago

Reply to the comment left by richard Gardner at 01/11/2018 - 15:28
I found out via my letting agent.

Nicky Caley

22:28 PM, 5th November 2018
About 8 months ago

I have a HMO in Sheffield and I had to give this information. I received a letter from my mortgage provider (both times) to confirm that they know I have a HMO Certificate and a reminder of the conditions I have to comply with as part of the loan.

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