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Question Title: Mortgagee Authority
| Question: 118 |
| Is it necessary to obtain the written authority of a mortgagee to let from the landlord before I take on a property or is a signed statement from the landlord sufficient ?
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| Answer: |
| Landlords are sometimes reluctant to obtain permission from their mortgagor as they fear permission may be denied or that the mortgage company will increase the interest rate on their mortgage. Mortgage companies have recently become far more attuned to the needs of landlords and there is far less cause for landlords to be wary of them than there used to be. You should also be aware that letting without the consent of the company that holds the mortgage on the property may render insurance invalid and landlords should be told to check their policies. The Accommodation Agencies Act 1953 requires that authority from the owner of the house must be obtained before the property is even advertised as being for let. As a result of a recent case (Islington Borough Council v Winkworth - see article on p9) it would appear that proper checks to verify the ownership of the property should be taken, and that a signature from the landlord stating that he is the owner may not be sufficient. Once ownership has been established, whilst ideal, it is not strictly necessary to obtain the written permission from the mortgagor providing the landlord has signed a statement saying that he or she has obtained that permission.
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
Jul 2001 page 26 |
letting-update-journal.html
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For more information, discuss on the Forum
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