Buy to Let - The Mortgage Works Conveyancing Requirements for Properties Let at Completion

The Mortgage Works conveyancing instructions are expressed in Part 1 of the CML Handbook which provides that unless it is clear from the mortgage offer that the property is let or is to be let at completion then you must check with The Mortgage Works as to whether The Mortgage Works lend on "buy-to-let" properties and that the loan is for that purpose.

Need help with "Buy to Let" from The Mortgage Works?

Previously updated on 08/04/2024 Section Two of the UK Finance Lenders’ Handbook for The Mortgage Works deals with who you need to contact If different from paragraph 1.11, i.e the contact point if property is let or to be let. It also deals with whether The Mortgage Works lend on buy-to-let

TMW is a buy to let lender. Rent back is not acceptable, you should report to us if the existing tenant has owned or retains an interest in the property or if the seller is to remain or retain an interest in the property.
Where the property is subject to selective licensing as designated by the Local Authority we will lend only if the licence is in place or will be granted on or before completion.

Where the premises, or part of it, is currently let, or is to be let at completion, then the letting must comply with the details set out in the The Mortgage Works mortgage offer or any consent to let The Mortgage Works issue. If the letting fails to comply, or no such details are mentioned, you are obliged disclose the position to The Mortgage Works

Part 2 of the UK Finance Lenders’ Handbook for The Mortgage Works deals with who you need to contact If different from 1.11, i.e the contact point when you do not have details of current letting or letting to take place at completion:

Originations

Property lawyers on the The Mortgage Works conveyancing panel,when it comes to buy to let properties need to check Part 2 of the UK Finance Lenders’ Handbook as to whether counterparts or certified copies of all tenancy agreements and leases in respect of existing tenancies must be sent to The Mortgage Works after completion

In addressing the question whether the mortgage company requires a certified copy letting contract to be sent The Mortgage Works says:

No,not required for properties let under a standard Assured Shorthold Tenancy within the meaning of section 20 of the Housing Act 1988 as amended by the Housing Act 1996 and subject to a maximum tenancy term of up to 36 months. If the AST is of 13-36 months duration please notify TMW accordingly but there is no requirement to send in the tenancy agreement.
Where the tenancy is not in the standard form(non AST) and let to a Local Authority,Housing Association, Government Department, NHS, Corporate Company or University we will require a copy of the agreement to be sent to us to verify the suitability of the tenant. In such cases you must confirm that the tenancy agreement meets the following requirements:
1)the tenant must be letting the property to a current employee of its organisation (if NHS, Government Department or Corporate Company) or
2)the tenant must use the property to provide accommodation for homeless persons under the Housing Act 1996 or similar legislation (if Local Authority or Housing Association) or
3)the tenant must use the property to provide accommodation to students (if a University)
4)the tenant must not use the property for business or create any business tenancy.
5)there must be no security of tenure afforded to the occupier or tenant.
6)the agreement recognises the existence of a mortgage and the potential for the mortgagee`s right to repossess.
7)the tenancy is no more than 3 years in duration.
8)the agreement must contain no other provisions which adversely affect the lender`s security or its right to enforce its remedies under the mortgage deed executed by the borrower.
Tenancy agreements or tenants that do not meet the above requirements are not acceptable and TMW must be informed immediately.

The information contained within this webpage is for general information purposes only for lawyers in England and Wales, it does not constitute advice and you should always check the UK Finance Lenders’ Handbook for The Mortgage Works Buy to Let requirements as well as the mortgage offer. Whilst we endeavour to keep the information up to date and correct but does not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information. The same caveat applies to members of the public looking at this page. If you wish to find a buy to let conveyancing specialist on the The Mortgage Works panel or a buy to let mortgage broker click here.