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Selling house, but tenanted and didn't inform Abbey......


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Hi all,

 

I know it's a bit naughty but I tenanted my property (via letting agency) without informing Abbey/Santander. They wanted to charge me something ridiculous like 2k to let it out.

 

I moved country, and couldn't leave it empty, nor could I sell it, and was skint after the move, so I made a decision to withhold the info.... :-(

 

Now I am selling the house, and am close to exchange. I am worried that Santander are going to hit me with a huge fine of some sort (can't find anything about fines in my original mortgage offer, but it does mention "don't let it out without our permission, so we can charge you an appropriate fee" .....

 

What sort of damage am I looking at if the truth comes out (and it always does in my experience).

 

Thanks!

 

p.

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I take it the property isn't tenanted now? If not I can't see how Santander would find out it was previously.

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hi there, thanks for the reply -

 

It is currently tenanted, but going through a Section 8 proceeding to get them out before the exchange. Hopefully this doesn't throw a spanner in the works, but if they do dig their heels in and cause problems (they're over 2 months in arrears, consistent lateness for a year, all grounds currently stand), what's the worse Santander could do?

 

Cheers!

 

dP.

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TBH I can't see them finding out, although you needed their consent all that would have happened would be that they would have risen the interest rate, see;

 

You should also inform your mortgage company (it is usually a condition of the mortgage that you do so).

 

Some lenders will take it as chance to review the rate that you pay (depending on whether you plan to let the property for the foreseeable future or if the let is only for a limited period).

 

Some may charge an administration fee for checking the tenancy agreement (they will want to check that their rights of possession in the event of a default on the mortgage remain unaffected). It is as well to check the conditions of your mortgage before letting the property.

 

How does letting affect a mortgage interest rate?

 

If you have authorisation to the letting of your property your rate will increase by 0.50% for Loan To Values of up to 80%, and by 1% for LTV's of greater than 80%.

 

If the property is being let without authorisation the figures increase by 1.50% and 2.00% respectively.

 

The rate increase will be added to whatever your rate is at the time.

 

What is the £100 letting fee for?

 

In processing the Consent to Let application form we need to go through a number of administration issues, and this fee goes towards all this.

http://www.skipton.co.uk/customer_Services/existing_borrowers/mortgageFaq.aspx#canILetMyProperty

 

So I suppose they could claim the extra interest for the letting period + the admin fee, but unless there is some problem with you paying the mortgage as it is now they are unlikely to do any checks.

Anthrax alert at debt collectors caused by box of doughnuts

 

Make sure you do not post anything which identifies you. Although we can remove certain things from the site unless it's done in a timely manner everything you post will appear in Google cache & we do not have any control over that.

 

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17 Port & Maritime Regiment RCT

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hi there, thanks for the reply -

 

It is currently tenanted, but going through a Section 8 proceeding to get them out before the exchange. Hopefully this doesn't throw a spanner in the works, but if they do dig their heels in and cause problems (they're over 2 months in arrears, consistent lateness for a year, all grounds currently stand), what's the worse Santander could do?

 

Cheers!

 

dP.

 

Do you have mortgage arrears?

 

The mortgagee will remain entitled to whatever it was you agreed to under your contact with them in relation to letting the property out. Whether they bother is debatable.

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