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Ask Clare Your Own Question
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34905
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
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Hi ClaireI wonder if you can help. I have an NRAM together

Customer Question

Hi Claire

I wonder if you can help. I have an NRAM together mortgage and have been renting the property out without consent to let, making me in breach of my mortgage t&cs. They now I believe have got suspicions as they have asked me to send utility bills proving I live there, which I can't provide. I believe that that will pursue repossession on this basis (despite having never missed or been late with any payments). I think my best option is to sell the house before repossession, but I would like to get some advice on what would happen to a) the delinked art of the loan - i know the interest rate jumps significantly, but what about the term of the loan - is it still kept at the original agreement (I have 19 years) b) if there is a shortfall - which is likely to the mortgage loan, what can I do regarding the payment of that c) what other negotiating options do i have if I don't sell it in time before they 'discover' i am in breach of my t&c and finally d) what are the legal implications of my actions? Can they aside from repossession take me to court for this? Any help greatly appreciated. thank you
Submitted: 4 years ago.
Category: Family Law
Expert:  UKSolicitorJA replied 4 years ago.

It seems that Claire has not managed to answer you and I will try and assist you.

It really is up to you whether or not to sell the property but as you are in breach of the terms and conditions of your mortgage, it really is up to NRAM to decide what to do. They have the right to demand immediate repayment of their loan and do not have to wait for the 19 years term to expire.

Or they may grant you permission to let retrospectively or allow you to convert the mortgage into a buy to let one.

I am afraid you don't have much negotiating options other than to ask them for permission to let or convert into buy to let. They may also choose to reposess the property and sell it, or you may choose to sell it off before they discover that you are in breach.

Yes, they could take you to court for breach of contract but they would need to show what damage they have suffered to claim damages from you.

However, there are very many landlords who have let out their properties without permission to let, so you are not in a unique position.

Hope this helps

Expert:  Clare replied 4 years ago.
Thank you for asking for me and I am sorry for the delay
How much is the house worth and how much is outstanding on the loans?