| Freehold:
Always
check your lease as even though you own the freehold to your property
there may be a clause that forbids the renting out of the property.
Many freeholds for example forbid the right to use the premises
as a business.
Leasehold:
Pay
attention to details. Consult
your lease and see if there is any clause that states that you need to
have the agreement of the freeholder before you can rent out your
property. Some freeholders
will insist that they see the references and even meet the prospective
tenants prior to the let being allowed to go ahead. Your
lease may have clauses in it which will inflict obligations on the
tenant. Noise levels etc so
it is advisable to attach a copy of the head lease to your tenancy
agreement and get the tenant to sign the agreement on the understanding
that they have seen and read the said head lease.
Mortgages:
You
must seek the approval of your mortgage company to let out your
property. Failure to do so
can lead to you being in breach of contract.
They will normally say yes as long as you pay a small fee for
their “administration” work. It
has been known for a mortgage company to raise the rate of interest on a
loan because they see it as a commercial venture.
When this occurred we argued on behalf of our landlord that he
had to rent out the property as it was too small for his requirements
and he did not need to sell it. Another
good way around this is to say that you are moving jobs and will not be
living in the area anymore but want to hang onto the property.
Make sure you inform them of any renewals that you may negotiate
– they will undoubtedly charge another fee – but at least you have
told them.
Insurance:
You
must obtain permission from both the providers of your contents
insurance and your buildings insurance when you rent out your property.
They may try and raise your premiums, but there are many
providers out there who will provide you with an excellent deal – such
as the one on our web site. All
insurance policies should include third party cover.
This is required in case the tenant injures himself in your
property – if this is the case and you have the insurance in place
then the insurer should pay, as long as you have sort consent from them.
|