stecoo Posted January 18, 2007 Report Share Posted January 18, 2007 I want to rent out my property, but I have a £44,000 mortgage with the building society. They say I have to ask their permission to rent and will charge me £100 to consider my request. Furthermore, they want to charge me £400 a year. My partner says just don't tell them, they'll never find out. What do you think? Link to comment Share on other sites More sharing options...
GPEL Posted January 18, 2007 Report Share Posted January 18, 2007 Break the terms and conditions of your mortgage and you risk losing the property. How does your partner know they'll never find out? Name & shame the BS, their annual fees seem extortionate. Have you investigated re-mortgaging elsewhere and renting correctly? Link to comment Share on other sites More sharing options...
stecoo Posted January 18, 2007 Author Report Share Posted January 18, 2007 How could you lose your property? Link to comment Share on other sites More sharing options...
joannasmith Posted January 19, 2007 Report Share Posted January 19, 2007 That charge doesn't seem too unreasonable to me. I am getting married this year and want to move in with my fiance and let out my flat. My mortgage company have requested a whopping £2000 'rental' charge to let me do this. I'm wondering if this falls into the 'illegal bank charges' bracket? Link to comment Share on other sites More sharing options...
plym77 Posted January 19, 2007 Report Share Posted January 19, 2007 I think that there is a whole range of different charged by mortgage companies. I am with Northern Rock and they charged just £100. This said, they dont necessarily give the best interest rates - so look at your costs as a whole. Link to comment Share on other sites More sharing options...
GPEL Posted January 19, 2007 Report Share Posted January 19, 2007 Many companies just charge a nominal admin fee. However, if your interest rate is fixed for a period, they may convert it to a variable rate and claw back the difference. Link to comment Share on other sites More sharing options...
Trenners Posted January 19, 2007 Report Share Posted January 19, 2007 Hi qweetcher, Either move the mortgage (which will cost you solicitor costs, remortgage costs and exit costs from the existing loan) or tell the building society and pay the tax deductable fee. Whatever you do - don't be dishonest. You are running a business. You need to be professional and always do things properly. Good luck, Mark Link to comment Share on other sites More sharing options...
Melboy Posted January 20, 2007 Report Share Posted January 20, 2007 How could you lose your property? Breach of contract. The mortgage contract is specifically with you and not your Tenant and letting and the BS/Bank can and do foreclose and call your mortgage in and if you can't pay it off they can repossess the property. Your Insurance company will also NOT pay out in the event of a claim as you have not informed the mortgage company. The reason why rules have changed is due to the large buy to let market that has grown over the past 7 years and people where trying to get round having a buy to let type mortgage. Easier to bite the bullet and pay up for peace of mind even though we all know it is rip-off. Mel. Link to comment Share on other sites More sharing options...
sue770 Posted January 20, 2007 Report Share Posted January 20, 2007 Hi When I first consider renting out my flat, which I am now in the process of selling. I am not selling because I recently got married and now my husband and I want to purchase a home of our own. If I had enough money I would continue renting but alas I am still waiting to win the lottery lol I had to inform my Local Authority. As I got my mortgage from Barclays they charged me £75 per annum for the renting out my property. As the property is/was managed by an agent, I also had to provide them with evidence that I can rent out the property ie letter from local authority and bank. Good luck, please let me know if I can be of any further assistance. As over the years I have had 4 tenants who have been excellent and I am glad that I was able to help them. I never had to serve any section 8 notices on any of them. The only notice I have had to issue is a Section 21 informing my current tenants that I will not be renewing the current tenancy agreement when it ends in May. Link to comment Share on other sites More sharing options...
stecoo Posted January 21, 2007 Author Report Share Posted January 21, 2007 Thanks for all the advice....... I'd come to the conclusion that the only way forward was to be honest, my partner has also seen the light! I'm tied into my mortgage company until November, then I'll look for a cheaper deal. Link to comment Share on other sites More sharing options...
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