anonymous newbie Posted February 22, 2012 Report Share Posted February 22, 2012 Hello All, I am relatively new to this and is my first post. A bit of a background first................. Recently we have let out our family home and taken a BTL mortgage on the same in order to purchase a smaller place. Received a confirmation from the mortgage lender stating that our mortgage application has been successful and funds are ready to be drawn provided our tenancy agreement is in line with their T&C's. However, our property was let out and the tenancy agreement in place prior to the lender providing us an offer and stating their terms. Having read through and tallied both the rent contract and lender's T&C's, we are not in any major breach except for the clause that the property cannot be sublet or shared for the first three months and If the property is let to a company (which is the case), only employees of the company can occupy the property. The company that we have have a tenancy agreement lets to groups of people of similar professional/ interests (mainly professionals. no students). What would be the best way to work around this clause? Now that our mortgage has been approved, what more documentation can the lender possibly ask for prior to us drawing the funds ? Does anybody feel this could jeopardize our mortgage ? Any advice / options available would be sincerely appreciated. Many Thanks...<br class="Apple-interchange-newline"> Trish Link to comment Share on other sites More sharing options...
Richlist Posted February 22, 2012 Report Share Posted February 22, 2012 Well it looks like you have wasted your money..... All you had to do was ask the lender for details of their lending criteria BEFORE applying for the mortgage, As you didn't do this and as you will be in breach of the mortgage terms should it go ahead I'm afraid the only correct course of action is to pull out of the deal and apply for another mortgage with another lender.......although its certainly not unusual for many mortgage lenders to exclude company lets of any kind Link to comment Share on other sites More sharing options...
anonymous newbie Posted February 23, 2012 Author Report Share Posted February 23, 2012 Well it looks like you have wasted your money..... All you had to do was ask the lender for details of their lending criteria BEFORE applying for the mortgage, As you didn't do this and as you will be in breach of the mortgage terms should it go ahead I'm afraid the only correct course of action is to pull out of the deal and apply for another mortgage with another lender.......although its certainly not unusual for many mortgage lenders to exclude company lets of any kind Thanks for that.... We have also spoken to the tenant and explained the situation. Since they really like the house and are comfortably settled, they have agreed to any amendments to the original tenancy contract. We are in talks with our solicitor to draw a new tenancy contract with the terms and conditions as mentioned by the lender. Do you think that might work ??? Many Thanks Trish Link to comment Share on other sites More sharing options...
Richlist Posted February 23, 2012 Report Share Posted February 23, 2012 Do you think that might work ??? No, I don''t......and I'm rather concerned that your solicitor isn't providing better advice. You have told us that you have let your property to a company ie a company let. They in turn have sub let the property to the tenants and presumably you had no say in choosing those tenants or the contract details between the company and the tenants ? If so, then you are not at liberty to re arrange the tenancy agreement as you are not party to it. Only the company can do that. Its the company with whom you have a contract and its them you should be talking to. Personally I don't see why the company would want to change anything unless there is a financial incentive for them. Link to comment Share on other sites More sharing options...
Mortitia Posted February 23, 2012 Report Share Posted February 23, 2012 Solicitor is making ££££'s -nice one! Trish - you might have been better re-morgaging own home rather than doing buy to let - less restrictions. Mortitia Link to comment Share on other sites More sharing options...
Geezah Posted March 4, 2012 Report Share Posted March 4, 2012 Re mortgaging onto a residential mortgage and then letting it out would be an even larger breach of mortgage conditions. If you intend to rent out a property, in most cases, a BTL mortgage is the way to go. However, there are some lenders who will allow you to rent out on a residential mortgage if for example you are in the HM Armed Forces. In most cases a 'consent to let' application would have to be made to the lender. Link to comment Share on other sites More sharing options...
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