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james bruce
james bruce, Solicitor-Advocate
Category: Law
Satisfied Customers: 4485
Experience:  Owner at James Bruce Solicitors
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I rented my house without permission, what will happen when

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i rented my house without permission, what will happen when i tell the lender
JA: Where are you? It matters because laws vary by location.
Customer: UK
JA: What steps have you taken so far?
Customer: ive i have sold the house, so just started proceeding with my solicitor, the lender isnt aware yet
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: i dont think so

Hello, I hope you are well. My name is***** am a solicitor advocate and I will be assisting you with your question today. I am very sorry to hear of the problem you are experiencing and I will do my best to help you with this matter.

Customer: replied 11 days ago.
hi James, im really concerned as ive read some horror stories around this,
Customer: replied 11 days ago.
i cant talk at this moment

If you have a standard residential mortgage and not a buy to rent mortgage, then without permission from the mortgage lender, you would be in breach of your mortgage agreement and at worst could even be considered to be committing mortgage fraud.

Many lenders will be flexible as long as you inform them that you want or need to rent the property, so speak to your lender and see what they say.

Customer: replied 11 days ago.
as i said, ive agreed a sale on the property, and i have plenty of equity, wim guessing they will charge me
Customer: replied 11 days ago.
ive let the property for the last couple of years without the lenders permission though
Customer: replied 11 days ago.
what should my next steps be?

If you are now selling the property, then unless they ask you when you redeem the mortgage if you have been renting, you could simply keep silent, as the rental has ended and the property sold.
But keep in mind for the future that you could get into difficulties renting if the mortgage does not allow you to do so.

Customer: replied 11 days ago.
ive agreed a sale, will the solicitor ask me the question?
Customer: replied 11 days ago.
in your experience, what should i do? as its a real worry, i didnt know i had to get permission form the outset
Customer: replied 11 days ago.
will telling them serve me better?

The mortgage documents you signed and would have a copy of, would confirm whether you could rent or not. If the lender did decide to to action there would be no defence of “I did not know “ as it would be clear in the documents that were signed.

It is unlikely the solicitor will ask you. They would want to confirm that the property is vacant on completion that is all.

Customer: replied 11 days ago.
i saw that on the paperwork i have to fill in. is lender likely to ask about renting?

Unlikely, if it is a residential mortgage, they would assume that it is just that, unless they have concerns or suspicions to say otherwise. Most lenders when it comes to a sale simply want there redemption money.

Customer: replied 11 days ago.
if i tell my solicitor its been rented will he have to tell the lender

Only if there is a question regarding that.

Customer: replied 11 days ago.
i really dont know what to do to be honest,

I can only advice on the legal position, the decision whether to tell then

you have been renting is only one you can make.

An option is to proceed with the sale as normal, and if in the unlikely event they ask that question they say yes.

Customer: replied 11 days ago.
what the most likely thing they would do if i tell them? considering the house will be sold

As the property is being sold, most likely they will do nothing. They could calculate a cost due to them for any difference in rates, they could black lis5 your name to cause problems obtaining another mortgage.

Customer: replied 11 days ago.
i see, thats another concern as i will want another mortgage later this year,

Unfortunately you will be completely in the hands of the mortgage lender and what they would do if they find out.

Customer: replied 11 days ago.
ok, ill have to make a decision

Good luck which ever way you decide to go.

Thank you for using Just Answer and for allowing me to assist you with your legal enquiry. I am pleased I was able to be of assistance. Please do not hesitate to come back to me for further advice on this or any other legal matter. It will be my pleasure to be able to assist you again.

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