WHAT DO I NEED TO CHECK WITH MY MORTGAGE LENDER OR LANDLORD?


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WHAT DO I NEED TO CHECK WITH MY MORTGAGE LENDER OR LANDLORD?


It is usual for a residential mortgage and/or the landlord’s own lease to contain terms preventing or imposing terms about letting the mortgage or leased property. Refer to your copy of the mortgage or lease to determine if you are prevented or need your lender’s permission before proceeding to let your property.

If letting your property places you in breach of the terms of your mortgage, the lender may well seek possession based on your breach of mortgage terms. Speak to your lender for clarification or ways round any mortgage terms by which you are bound. Ways forward may see the lender seeking to impose stipulations on the type of tenant to whom you can or cannot let to or a maximum term let.

Naturally the duty to pay your mortgage remains unaffected by a let, but tenants have certain rights to attend any possession proceedings based on default in mortgage repayments, so your lender’s concern is not without foundation.

Similarly if your property is subject to a lease in your favour, that tenancy may contain terms about further leases being granted and you should look at your lease to see if there is anything that may pose a problem to a further tenancy being granted.