Page 15 - ESPC Magazine - October2021

EXPERT ADVICE

BUY-TO-LET MORTGAGES: IS IT ILLEGAL
TO RENT OUT WITHOUT ONE?

Looking to rent out your property, but don’t have a buy-to-let mortgage? Read the advice from
the team of experts at ESPC Mortgages to help you stay on the right side of the rules.

It is legal to rent a property with no buy-to-let to its own merits and the lender’s own terms
mortgage, but only if you own the property and conditions at that time.
outright already, or are a cash purchaser.
However, if you do need a mortgage, then Certain lenders may charge an administration
you have to be entirely honest with your fee in this regard. Some other lenders can AFFORDABLE HOMES
lender as to what your intentions are for also impose an interest rate levy. At the end
the property. of any tie-in period, most lenders would AVAILABLE IN EDINBURGH
want the mortgage converted to a buy-to-let
RESIDENTIAL VERSUS BUY-TO-LET mortgage if the property is still being rented. A number of properties at Cammo Meadows are ‘Golden Share’ homes
MORTGAGES meaning that the for sale price is capped at an affordable level – you will
Residential mortgages are less expensive ESPC Mortgages offer expert independent own 100% of the property but the price is capped at 80% of the market
and require lower deposits than buy-to-let mortgage advice in Edinburgh. If you are value on the fi rst sale and all subsequent re-sales.
mortgages. This is because lenders assess a interested in finding out more about buy-to-
buy-to-let mortgage as a greater risk, simply let mortgages, get in touch with the team on Maybury Road, Edinburgh EH4 8DY
because the property will be rented out, fsenquiries@espc.com or 0131 253 2920.
rather than being owner-occupied.

It therefore stands that if you do need
a mortgage to assist with a buy-to-let
purchase, then that mortgage needs to be a
buy-to-let mortgage.

CONSENT TO LET
There are certain situations when a
homeowner may find that they wish to rent
out their domestic property for a period
of time after they have lived in it. Perhaps
they’re moving in with a partner, temporarily Two bedroom homes A range of apartments and houses Prices from £195,200
relocating for work commitments, or even The information contained in this article is provided in good
faith. Whilst every care has been taken in the preparation of the
moving abroad with family, but aren’t ready information, no responsibility is accepted for any errors which,
to sell their home. despite our precautions, it may contain. No individual mortgage
advice is given, nor intended to be given in this article.
In these circumstances, lenders may consider See the Difference at dwh.co.uk
The initial consultation with an ESPC Mortgages adviser is free
giving a ‘Consent to Let’ or ‘Permission to Let’. and without obligation. Thereafter, ESPC Mortgages charges or call 0333 355 8461
This essentially means that the lender agrees for mortgage advice are usually £350 (£295 for first-time
for the homeowner to let out the property for buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO
a period of time, usually until the end of any NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER
LOANS SECURED AGAINST IT. ESPC (UK) Ltd is an Appointed Offer available on selected plots only. Terms and conditions apply. See website for details, subject to contract and status. Prices correct at time of publishing if
current tie-in period. Each application would Representative of Lyncombe Consultants Ltd which is mentioned. Images include optional upgrades at additional cost. Following withdrawal or termination of any offer, we reserve the right to extend, reintroduce or
amend any such offer as we see fi t at any time. Barratt Homes is a brand of BDW TRADING LIMITED (Company Number 03018173), a company registered in England
be individually assessed and agreed subject authorised and regulated by the Financial Conduct Authority. whose registered offi ce is at Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire LE67 1UF, VAT number GB633481836. Calls to 03
numbers are charged at the same rate as dialling an 01 or 02 number. If your fi xed line or mobile service has inclusive minutes to 01/02 numbers, then calls to 03 are
counted as part of this inclusive call volume. Non-BT customers and mobile phone users should contact their service providers for information about the cost of calls.
These properties are available to those who meet the affordability criteria for the City of Edinburgh Council’s Golden Share scheme. Ask our Sales Adviser for full Ts&Cs.
14 ESPC.COM