Consent to Let, Tied Accommodation
Detailed guide to obtaining Consent to Let for tied accommodation (military, NHS, teaching, clergy), including lender requirements, costs (£50-£300), tax implications, and comparison with buy-to-let remortgaging options.
Consent to Let for Tied Accommodation
Tied accommodation is housing provided by your employer as part of your employment contract. If you own a residential mortgage on a different property but need to temporarily let it out while living in tied accommodation, you'll need "Consent to Let" from your lender.
What is Tied Accommodation?
Common examples include:
- Military personnel living in forces accommodation
- Hospital staff (doctors, nurses) in hospital quarters
- School staff in school-provided housing
- Agricultural workers in farm cottages
- Clergy in church-owned manses/rectories
- Police officers in police housing
Why Do You Need Consent to Let?
Your residential mortgage was granted on the basis that you'd live in the property. If your employment requires you to live elsewhere in tied accommodation, you must inform your lender and request permission to let your property.
Lender Attitudes to Tied Accommodation
| Lender Type | Consent to Let Available? | Typical Fee | Duration | Requirements |
|---|---|---|---|---|
| High Street Banks | Yes, case-by-case | £50-£200 | 12 months (renewable) | Proof of tied accommodation, rental insurance |
| Building Societies | Usually Yes | £100-£300 | 12-24 months | Employment contract showing tied housing |
| Specialist Lenders | More Flexible | £0-£150 | 24 months+ | Less stringent evidence |
| Buy-to-Let Refinance | Alternative Option | Product fees £999+ | Long-term | Full buy-to-let criteria |
Key Requirements for Consent to Let
Evidence You'll Need:
- Employment Contract: Showing tied accommodation clause
- Proof of Address: Utility bill or tenancy agreement for tied accommodation
- Tenant Details: If you've already found tenants
- Landlord Insurance: Most lenders require this
- Rental Income Evidence: AST (Assured Shorthold Tenancy) agreement
Tax Implications
Consent to Let is NOT a Buy-to-Let Mortgage, but you're still a landlord:
- Income Tax: Rental income is taxable (declare on self-assessment)
- Mortgage Interest Relief: Limited to 20% tax credit (not full deduction)
- Capital Gains Tax: May apply when you sell (no longer eligible for Private Residence Relief)
- Stamp Duty: No immediate impact, but affects future purchases (3% surcharge on additional properties)
Real-World Scenarios
Army Officer Deployed Overseas Captain James owned a £275,000 house with a residential mortgage. Upon deployment, he moved into military accommodation. His lender granted 24-month Consent to Let with a £150 fee, allowing him to rent his property for £1,400/month while stationed abroad.
NHS Doctor in Hospital Accommodation Dr. Sarah, a junior doctor, rotated to a new hospital 200 miles away with on-site accommodation. She obtained 12-month Consent to Let from her building society (£200 fee), renting her flat for £950/month during her rotation.
Teacher in School-Provided Housing Mr. Patel, a housemaster at a boarding school, lived in school accommodation. His lender approved Consent to Let for his owned property, renewable annually, enabling him to rent it out for £1,100/month while fulfilling his teaching duties.
Consent to Let vs Buy-to-Let Remortgage
| Factor | Consent to Let | Buy-to-Let Remortgage |
|---|---|---|
| Cost | £50-£300 fee | £999+ product fees, legal costs |
| Interest Rate | Remains on residential rate | Higher BTL rates (usually +1-2%) |
| Duration | Temporary (12-24 months, renewable) | Permanent |
| Affordability Test | None (or minimal) | Rental income must cover 125-145% of mortgage |
| Tax Efficiency | Limited mortgage interest relief | Same limited relief |
| Flexibility | Easy to revert to residential | Requires remortgaging again |
Expert Tips
- Request Consent Early: Don't wait until you've signed a tenancy agreement
- Understand Duration: Most consents are 12 months - set a diary reminder to renew
- Keep Residential Benefits: Consent to Let keeps you on your residential rate (usually cheaper)
- Consider Long-Term Plans: If tied accommodation lasts 5+ years, BTL remortgage may be better
- Declare Rental Income: HMRC penalties for undeclared income are severe
What Happens If You Don't Get Consent?
Consequences of Letting Without Permission:
- Breach of Contract: Your lender can demand immediate full repayment
- Insurance Invalidation: Your buildings/contents insurance may be void
- Mortgage Fraud: Technically, letting without consent is mortgage fraud
- Difficulty Remortgaging: Future lenders will see the breach on credit file
Frequently Asked Questions
Q: Can my lender refuse Consent to Let? A: Yes, though most approve it for tied accommodation. If refused, you may need to remortgage to a buy-to-let product.
Q: How long does Consent to Let approval take? A: Typically 2-4 weeks. Allow extra time for lender processing.
Q: Can I renew Consent to Let indefinitely? A: Most lenders allow renewals, but after 3-5 years may require you to remortgage to buy-to-let.
Q: What if my tied accommodation ends suddenly? A: Inform your lender immediately. You can usually end the consent early and move back in, or continue renting with a new consent reason.
Q: Do I need to tell my lender if I'm living rent-free with family? A: Not usually, unless you're renting out your mortgaged property - then you need consent regardless of where you're living.
How We Can Help
Our specialists navigate Consent to Let applications daily:
- Negotiate with your existing lender for competitive consent terms
- Compare BTL remortgage options if consent is refused or long-term letting planned
- Ensure compliance with tax and legal obligations
- Fee-free advice on tied accommodation mortgages
Next Steps
- Check your employment contract: Confirm tied accommodation terms
- Contact your lender: Request Consent to Let application forms
- Speak to us: We'll guide you through the process and ensure approval
Need Consent to Let for tied accommodation? Contact our team for expert, hassle-free support.