Why ‘consent to let’ is important

Before you start letting your property, you may need to inform and gain consent from several parties, such as:

• Mortgage Lenders
• Insurance Companies
• The main Landlord (if your property is leasehold)

Ensuring you have the proper consent helps you avoid contravening any pre-existing agreements, such as covenants or housing loans.

Mortgage considerations

If you have a standard residential mortgage on the property, especially if you’ve become an accidental landlord, it’s essential to check with your lender. There are a couple of possible outcomes:

1. Consent to let on existing mortgage: the lender may allow you to let the property temporarily. Typically, they’ll raise the interest rate to account for the increased risk associated with letting.
2. Requirement to switch to a buy-to-let mortgage: alternatively, the lender might require you to convert your mortgage to a buy-to-let product, which is specifically designed for rental properties.

Insurance implications

Renting out your property without informing your insurance provider can have serious consequences. If you let your property in breach of your insurance policy, the insurer may refuse to pay out any claims you make. Therefore, it’s crucial to update your insurance policy to cover rental activities.

Leasehold properties

If your property is leasehold, subletting without consent from the main landlord can lead to severe repercussions. This might include the risk of losing your lease altogether if you are found to be in breach of its terms.

Key steps to take

1. Check your mortgage terms: contact your mortgage lender to understand their requirements for letting your property.
2. Update your insurance policy: inform your insurance company about your intention to let the property and ensure your policy covers rental activities.
3. Review your lease agreement: if your property is leasehold, review the terms of your lease and obtain the necessary permissions from the main landlord.

Conclusion

Taking the time to obtain the necessary ‘consent to let’ ensures you comply with all legal and financial requirements, protecting you from potential risks. It’s an essential step for every landlord to safeguard their investment and maintain good standing with all relevant parties.

If you have any questions or would like to find out the current value of your rental properties, you are welcome to book a complimentary call with one of our lettings experts!