If you have a mortgage on the property you live in, and you decide to move out and let your property instead of selling it, you will need consent to let. In this blog, we look at the situations where you might need consent and how it works, as well as highlighting potential difficulties. 

What is consent to let?

Consent to let is permission granted by your mortgage lender to let out the property you bought and intended to live in yourself. If you bought the property intending to let it, you would have been given a buy-to-let mortgage at the outset and will not need separate consent to let the property. 

What circumstances need consent to let?

Life’s complicated and no one knows what the future holds. Sometimes, homeowners are stuck in a property with a fixed-term mortgage, but letting the property for a few years before selling it saves them from early repayment penalties. In other situations, homeowners have to move away for work or study, but know they will be returning home afterwards. Some people choose to let their property while they move to somewhere smaller, or in a cheaper area. 

It's my house – why do I need consent to let it out?

As long as you have a mortgage, it’s partly owned by the lender and they have a say in how you can use the property.

You need to get consent from your lender because letting the property without it is a breach of your mortgage. Your mortgage was given to you on the understanding that you would be living in the property and not deriving an income from it. So if that situation changes, you need to notify your lender and get their consent before you can let your property. 

Letting a property without consent can incur serious penalties from your mortgage lender. These include repossession, fines or extra interest payments. 

Is consent to let free or is there a charge?

Sometimes consent to let is free and sometimes there is a charge. Don’t assume it will be free and always check with your lender. Depending on your circumstances, your mortgage lender might encourage you to change to a buy-to-let mortgage. 

Can my lender refuse to give me consent to let?

In most cases, consent is granted, but wise homeowners check with their mortgage lenders before making big decisions that depend on it. 

It’s worth noting circumstances where consent might not be granted. If one or more of these situations apply to you, consent could be refused:

·       You bought your property on the Help to Buy scheme

·       Your property is under shared ownership

·       You haven’t lived there long 

·       You’re behind with mortgage repayments 

Always check with your mortgage lender

We hope this blog has explained about consent to let and why it matters. However, you should always get advice specific to your mortgage and circumstances before you make any big decisions. If you’re considering applying for consent to let, always talk to your mortgage advisor first. 

Let property in Guildford

If you have received consent to let and you’re ready to let your property, we’d love to help! We offer let only, rent collection or fully managed services so you can have as much support from us as you need. To find out more, contact our friendly team today on 01483 457 000.