If you’re a landlord and considering renting out your property, you may have come across the term ‘consent to let’. This is an important concept that every landlord should understand before proceeding with letting out their property. In this article, we’ll explain what ‘consent to let’ means, why it’s necessary, and how to obtain it. We’ll also look at some common questions that landlords have about this process.

What is Consent to Let?

‘Consent to let’ refers to the permission that a property owner must obtain from their mortgage lender if they want to let out their property. This permission is necessary because most mortgages are designed for owner-occupiers, not landlords. If you want to let out your property, you’ll need to get the consent of your mortgage lender, which will involve making certain disclosures and potentially paying additional fees.

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Why is Consent to Let Necessary?

Consent to let is necessary because letting out your property without the proper permission could be a breach of your mortgage agreement. If you breach your mortgage agreement, your lender could demand that you repay your mortgage in full, or even repossess your property. This is why it’s important to get consent to let before renting out your property.

How do you Obtain Consent to Let?

To obtain consent to let, you’ll need to contact your mortgage lender and inform them that you want to let out your property. They’ll likely require you to complete an application form and provide certain information, such as the details of your tenancy agreement and the amount of rent you’ll be charging. They may also require you to pay an administration fee, which can vary from lender to lender.

It’s important to note that some lenders may refuse to give consent to let, particularly if they’re concerned about the financial stability of the landlord or the property. If this is the case, you may need to consider switching to a buy-to-let mortgage, which is specifically designed for landlords.

Implications of Consent to Let

Obtaining consent to let has several implications for landlords, including:

• Restrictions on the type of tenancy agreement you can use: Some mortgage lenders may only allow you to use certain types of tenancy agreements, such as assured shorthold tenancies (ASTs).
• Potential changes to your mortgage rate: Some mortgage lenders may increase your mortgage rate if you let out your property, particularly if you’re switching from an owner-occupied mortgage to a buy-to-let mortgage.
• The need to inform your insurance provider: You’ll need to inform your insurance provider that you’re letting out your property, as this could affect your insurance coverage.

FAQs

1. Can I let out my property without obtaining consent to let?

No, letting out your property without obtaining Consent to Let could be a breach of your mortgage agreement.

2. How long does it take to obtain consent to let?

The time it takes to obtain consent to let can vary depending on the lender, but it typically takes between 2-4 weeks.

3. Will I need to pay extra fees to obtain consent to let?

Some lenders may require you to pay an administration fee to obtain consent to let, but this can vary from lender to lender.

4. Can I switch to a buy-to-let mortgage instead of obtaining consent to let?

Yes, if your lender refuses to give consent to let, you may need to switch to a buy-to-let mortgage.

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