Consent to Let Mortgages Over 55s

Consent to let works by the lender giving you formal permission to let your residential property while keeping the existing residential mortgage in place. The mortgage terms typically continue unchanged, though some lenders charge an administration fee or apply a small interest rate premium during the consent period. The consent is usually given for a specific period (six months to two years is typical), with an option to extend subject to the lender’s discretion. If you exceed the consent period without renewal, you may be in breach of your mortgage terms.

Lender policy on consent to let varies considerably. Some lenders grant consent readily in specific circumstances (work relocation, caring for a family member, extended travel). Other lenders require stronger justification or may only allow consent to let for shorter periods. A few lenders refuse consent to let as a matter of policy, requiring you to move to a BTL mortgage instead.

For over 55s borrowers, consent to let is often easier to secure than for younger borrowers in some respects because the temporary nature of the letting is more clearly evident (for example during an extended care period for a family member). The age of the borrower is not usually a specific factor in consent to let, though the existing mortgage terms and any age caps on the mortgage itself will still apply.

Consent to let has specific implications for buildings insurance. Residential buildings insurance usually does not cover the property while let unless the insurer has been informed. Where consent to let is in place, the insurance needs to be updated to cover letting, which may require a landlord insurance product or an extension to the residential policy.

Tax treatment of rental income during a consent to let period is the same as for any other rental: the income is taxable and must be declared to HMRC. Mortgage interest relief restrictions under Section 24 apply to consent to let rental income in the same way as to standard BTL.

Consent to let is regulated by the Financial Conduct Authority because the underlying mortgage remains a residential mortgage. This is different from standard BTL, most of which is not FCA-regulated.

The Process

Your first conversation is a relaxed discussion about your plans, the letting period, and your existing mortgage. There is no cost or obligation.

We may be able to help you approach your existing lender for consent to let as part of a broader advice conversation, or advise on whether a move to a BTL or let to buy product would be more appropriate. We come back to you with a written recommendation.

Every consent to let case is different. A six-month temporary let during a work contract is a different situation from a two-year let during an extended family care period, and our advice reflects those differences.