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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9605
Experience:  I have been practising for 30 years.
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How would I go about getting permission from the bank who have

Resolved Question:

How would I go about getting permission from the bank who have given me my residential
mortgage to rent out my home to tenants?
What would the process entail at both my end and their end?
How long would it take the bank to write to me confirming that they're happy for me to rent out my home?
What problems am I likely to encounter along the way in terms of asking the bank to agree to this, and what would be my best way to ensure that those problems are satisfied as soon as possible?
Submitted: 3 years ago.
Category: Law
Expert:  F E Smith replied 3 years ago.
Good day.

Have you actually asked the bank at all yet?
Customer: replied 3 years ago.
No, not yet. I wanted to know the legal answers to the above questions before approaching them.
Expert:  F E Smith replied 3 years ago.
It is simply a case of writing to the bank and explaining exactly what you want to do and asking for permission.

They will change the mortgage to a buy to let mortgage and probably increase the interest rate.

What I must tell you is that the terms and conditions change dramatically if you are letting your property out and they no longer need to go to court to get possession of the property if you fall into arrears or you breached the mortgage conditions in any other way.

In cases like that, they can point what are known as LPA Receivers to look after the property and manage it however there has been a lot of mismanagement in cases like this and people have lost hundreds of thousands of pounds.

Once a property is in the hand of LPAR it is virtually impossible to get it back even if all the arrears are paid up to date.

It is absolutely imperative therefore that each mortgage payment is paid in full on time every month otherwise you could very quickly lose the house.

I hope I've answered everything for you but I am happy to answer any further questions that you may have on this subject.
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