One of the perks of qualifying and working as a medical professional is that your job can take you anywhere. The opportunity to travel and work abroad, or even live and work in another part of the UK, is a major plus point. However, with any move, there’s a lot of admin to deal with, including scoping out your new area and finding somewhere to live.
If you already own a home, you’ve got the added question of what to do with your existing property. For many medical professionals and doctors, relocation for a new job is often for a fixed time period, depending on the work contract. Due to this, you may not want or be in a position to sell. Perhaps you might prefer to rent out your home while you’re away temporarily? If you have a mortgage on your property, you will need to get the lender’s permission to rent out your property. This is called a consent to let agreement, and here is everything you need to know about what it is and how to get one.
What Is Consent To Let?
If you have a residential mortgage and need to rent out your property for a short period of time, a consent to let agreement can let you do that. Consent to let is a formal agreement between the mortgage lender and borrower that grants permission for the borrower to rent out their home for a short period. This is the only legal way to rent out your property with a residential mortgage. It’s important to stress that consent to let is only a temporary arrangement.
Lenders tend to take consent to let requests on a case-by-case basis. If you don’t get your mortgage lender’s permission before letting out your home, you will be in breach of your mortgage agreement, which could be considered fraud and result in a hefty fine or your property being repossessed.
Why Might Someone Need A Consent To Let Agreement?
There are a few reasons why a person may need a consent to let agreement. Although lenders review requests on an individual case basis, they are usually more than happy to help if the reason for wanting to rent out your property is genuine. Medical professionals will usually ask for consent to let if they need to move for a short-term work contract, either in a different area of the UK or abroad.
Other instances where consent to let might be needed include:
- If you’re going travelling for a few months.
- You’re moving in with a partner or family member and want to rent out your current home while waiting for it to sell.
How Do You Get A Consent To Let Agreement?
You will need to apply for consent to let directly with your lender. As already mentioned, no request for consent to let is automatically granted; lenders assess each request on an individual basis. Criteria vary between lenders, but generally, the following conditions might apply:
- Your mortgage repayments must be up to date.
- Your property must be rented out on an assured shorthold tenancy agreement.
- You must tell your home insurance provider.
- You’re only allowed one tenancy agreement, and there might be a limit to the number of tenants who can live in your home at one time.
- You might need a certain amount of equity in your home first.
- You may need to meet a minimum income threshold.
- You may only be eligible to apply for consent to let if you’ve held the mortgage for at least six months, but this requirement varies between lenders.
How Long Does Consent To Let Last?
Consent to let is not a long-term solution. Depending on your circumstances, the lender will only permit you to rent out your home for six to 12 months. However, in some cases, you may be allowed to rent out your home for up to 24 months. After the agreed consent to let period ends, the original terms of your mortgage will kick back in.
What Happens If I Want to Extend the Consent To Let Period?
As a medical professional working abroad or in another area of the country, the opportunity to extend your work contract might arise. This might leave you in a bit of a predicament with what to do with your property if the consent to let agreement is coming to an end. Any extensions to consent to let agreements are at the lender’s discretion. If your lender doesn’t agree to an extension, you’ll need to convert your existing mortgage into a buy to let one, but that will depend on your next steps and whether you want to keep your property.
If you are wondering whether a consent to let or buy to let mortgage would work better for you, get in touch with our friendly team today.
