If you’re a landlord with a mortgage on a property and you want to rent it out, you may need to apply for Consent to Let from your mortgage lender. In this article, we’ll explain how to apply for Consent to Let and how much it might cost.

What is Consent to Let?

Consent to Let is an agreement between a landlord and their mortgage lender that allows the landlord to rent out a property that has a mortgage on it. Without Consent to Let, landlords may be in breach of their mortgage contract and could face legal consequences.

Reasons for Needing Consent to Let

There are several reasons why a landlord may need Consent to Let:

• They may need to move away for work or personal reasons and can’t sell the property at the moment.
• They may be struggling to sell the property and need to rent it out to cover the mortgage payments.
• They may have inherited the property and don’t want to live in it.

Whatever the reason, it’s important to obtain Consent to Let before renting out a property.

Applying for Consent to Let

To apply for Consent to Let, you need to contact your mortgage lender and ask them for an application form. You can usually find this on their website or request it by phone or email.

Once you have the form, you’ll need to fill it in with details about yourself and the property. You’ll also need to provide information about the tenancy agreement, such as the rental income and the length of the tenancy.

Documents required for Consent to Let

To support your application for Consent to Let, you’ll need to provide certain documents. These may include:

• A copy of the tenancy agreement
• Proof of income for the tenant(s)
• Proof of your income as the landlord
• Proof of buildings insurance for the property
• A letter explaining why you need Consent to Let

Your mortgage lender may also ask for additional documents, so it’s important to check with them before submitting your application.

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How much does Consent to Let cost?

The cost of Consent to Let varies depending on the mortgage lender and the type of mortgage you have. Some lenders may charge a one-off fee, while others may charge an annual fee for the duration of the tenancy.

In general, you can expect to pay between 0.5% and 1.5% of the outstanding mortgage balance per year for Consent to Let.

Alternatives to Consent to Let

If you can’t obtain Consent to Let from your mortgage lender, you may have other options. These could include:

• Switching to a buy-to-let mortgage: This type of mortgage is specifically designed for landlords and allows them to rent out the property without needing Consent to Let.
• Selling the property: If you can’t obtain Consent to Let and don’t want to switch to a buy-to-let mortgage, you may need to sell the property instead.

Consequences of not obtaining Consent to Let

If you rent out a property without obtaining Consent to Let, you could face serious consequences. These could include:

• Breach of mortgage contract: You may be in breach of your mortgage contract, which could result in legal action being taken against you.
• Voiding of insurance: If you don’t have Consent to Let and something goes wrong with the property, your insurance may be voided and you won’t be covered. This could leave you with significant financial losses.

• Fines and penalties: You may be fined or penalised by your mortgage lender or by the local council if you’re found to be renting out a property without Consent to Let.

It’s important to obtain Consent to Let before renting out a property to avoid these consequences.

Frequently Asked Questions

• Do I need Consent to Let for a buy-to-let property?

1. No, buy-to-let mortgages are designed specifically for landlords and allow you to rent out the property without needing Consent to Let.

• How long does it take to get Consent to Let?

1. The time it takes to get Consent to Let can vary depending on the mortgage lender and the complexity of the application. It can take anywhere from a few days to several weeks.

• Can I rent out a room in my home without Consent to Let?

1. If you have a residential mortgage on your property, you’ll need to obtain Consent to Let if you want to rent out a room in your home.

• Can I get Consent to Let if I have arrears on my mortgage?

1. It’s unlikely that you’ll be able to get Consent to Let if you have arrears on your mortgage. You’ll need to speak to your mortgage lender to find out what options are available to you.

• Can I get Consent to Let if I’m in negative equity?

1. It’s possible to get Consent to Let if you’re in negative equity, but you’ll need to speak to your mortgage lender to find out what options are available to you.

Conclusion

If you’re a landlord with a mortgage on a property, it’s important to obtain Consent to Let before renting it out. This agreement between you and your mortgage lender will ensure that you’re not in breach of your mortgage contract and can avoid serious consequences. The cost of Consent to Let can vary, but it’s generally between 0.5% and 1.5% of the outstanding mortgage balance per year. If you’re unable to obtain Consent to Let, there may be other options available to you, such as switching to a buy-to-let mortgage or selling the property.

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