I’ve been campaigning for Santander to drop this ridiculous clause which forces up rents every year for no benefit to anyone, including Santander. They have announced today that they will be dropping this clause for new mortgages but it will still apply to existing mortgages.
Santander’s disingenuous response states “Any potential to increase the rent is only that which can be ‘reasonably achieved’. Therefore we feel there is plenty of discretion for the landlord to set a rent that they and the tenant agree, and NO DIRECT OBLIGATION IMPOSED by us that the rent should be the maximum possible.”
The clause in the mortgage contract states:
“c) If the valuer advises that the market rent at the date of the review is likely to be higher than the current rent, YOU WILL PROMPTLY TAKE ALL STEPS which it is open to you to take under the lease to ensure that the review takes place AND LEADS TO THE MAXIMUM INCREASE IN THE RENT which can reasonably be achieved;”
To my mind, this categorically states that the landlord has an obligation to raise the rent every year. In addition, they don’t mention that we still need to pay £300/£400 EVERY YEAR for a RICS valuer, which we can then supposedly ignore, according to them. This makes no sense to me. What do you think?
Santander BTL contract clause stipulates Landlords increase rents by as much as can be reasonably achieved