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  • Buy-to-Let

    Alliance and Leicester - permission to let

    Question from a family member who, due to a breakdown is having to let his family flat as he cannot live there on his own. To try and summarise he telephoned A&L asking for permission to let due to breakdown and being on medical leave from work resulting in a reduction in salary. To pay mortgage he had to rent property out - he was told this would be in order but there would be an admin charge. He then contacted local letting agent who promptly found somebody to rent the flat. Then received letter from A&L saying they could not agree to letting as mortgage was a "mortgage plus" could not agree to let. Think this is where he borrowed nearly 100% of purchase price (only purchased 2 years ago) part on mortgage and part on loan. He went back to A&L saying that he had agreed to let as they had prev agreed and that he could not pay mortgage without letting. They then agreed to let (in writing) but only for one year, This 1 year agreement is now worrying him as he says that he cannot go back to flat. I have said don't worry about it as all A&L want is their mortgage paid but due to his health he is worrying. Any suggestions. Thank you
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    Hi Jane,
    Sorry to hear of your family member's predicament. There is discussion about Consent to let >>>> here.
    I believe that the lender is only saying "one year agreement" because they do not want anything more than a 12 month AST issued. Many lenders do not like anything longer than a 12 month agreement.
    I suspect that when the year is up, they will write and ask if the property is still tenanted and renew the one year agreement.
    Please tell your family member not to worry. A lot can happen in a year, and people's circumstances are allowed to change - no lender can dictate otherwise.
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    Hi
    As Vanessa said, they probably do not want you to offer the tenant an AST longer than 12months. Get back to them in a years time and you may find they will say the same again.
    Regards
    Wasim
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    Hi Jane
    My view is as per Vanessa. I think the “one year” refers to the length of the agreement between the current borrower & the tenant. It doesn’t refer to the length of time A&L will agree to letting. No doubt at the end of the year, provided the mortgage has been paid on time each month they won’t have a problem extending the permission.
    Kind regards
    Mary Waring
    https://www.marywaring.co.uk
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    Thank you all for your comments. Your thoughts echo mine but I think when you have had a breakdown everything seems so much more worrying. Hopefully in a years time he can continue letting the property and his health will be better.
    All your comments were much appreciated and thank you for taking trouble to post
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    Hi sorry I know it is an old thread but found it through googling as I am in the same situation wanting to rent my plus mortgage but unable to, but after having it agreed for a year then once I'd actually had an offer accepted on another property A&L then said I can't due to the unsecured part needing to be redeemed. After a long complaint they have agreed a year but wouldn't say if this could be extended. What should it matter to them, it'll be paid I will make sure of that. So just wondered what had happened in the case of your relative. Thanks
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