Jan 10, 2023

Consent to let a property

Have you obtained any necessary ‘consent to let’ your property?

Before letting a property, you may be required to inform and gain consent from other people or organisations, such as a mortgage lender, insurance company or the main landlord of a leasehold property. You must make sure that letting the property does not contravene any pre-existing signed agreements, such as covenants or housing loans.

It’s particularly worth checking consent if you’ve become an accidental landlord – especially if there is a standard residential mortgage on the property. The lender may grant you consent to let on the existing mortgage for a limited period of time – in which case they’ll usually raise the interest rate to account for the increased risks associated with letting – or they may require you to apply for a buy to let mortgage.

Note also that if you rent out a property in breach of your insurance policy, your insurer can refuse to pay out if you make a claim.  If your property is leasehold and you are subletting in breach of the terms of your lease, you could be at risk ultimately, of losing your lease altogether. For more information, read our article Accidental landlords – do you have consent to let your property?‍