For many Penicuik homeowners, letting provides an obvious investment opportunity as an alternative to selling. With the right expert help from your letting agent, the matter should be quite straightforward, although there are certain consents that should be obtained if you are to avoid some potentially costly problems.
As with far to many things in life, the devil is in the detail so make sure that you take into account the small print.
You will certainly need the consent of your mortgage provider. They are unlikely to object, but you could be in breach of your mortgage terms if you have not obtained their consent before letting your property. They may also charge an “administration” fee. One important thing to check is that there is no clause that increases the interest rate on your loan should the property be used as a “commercial venture”.
Your title deeds are something else you should check to see whether they impose any restrictive covenants of which the tenant should be aware. For example, there may be a restriction preventing anyone keeping a caravan on the forecourt, or storing building materials for more than a few days.
Importantly, once consent has been obtained, you must ensure that your tenant is aware of, and complies with, any obligations that you yourself would observe as owner in residence.
Finally, insurance. You should obtain permission from both your buildings and contents insurer. There is likely to be a change in cover as the property is being let out and this may increase your premiums, although there are insurers who specialise in this. As a minimum you should ensure that you are covered for any third party liability in respect of injuries to your tenant whilst at your property and I would do further and recommend you get malicious damage and loss of rent cover.
Please let us know if you would like advise what consents are required in your specific case to ensure your peace of mind for a successful let.
A few more interesting articles about the Penicuik property market:
- Penicuik’s ‘Generation Rent’ to grow by 1,790 households by 2021 http://bit.ly/2ccSv5P
- Penicuik property prices set to drop £18,000 in the next 12 months due to Brexit? http://bit.ly/2cetZzW
- 18% of Penicuik Homes Are Three People Households http://bit.ly/2bl12X4
- Post Brexit property disaster - more like a ‘soft landing’ so far Nationwide claims
- It’s summer time .... and there are burglars about in Penicuik http://bit.ly/2bkzzAz
- A look at how the Private Rented Sector is performing, Summer 2016 http://bit.ly/2aCHqMw