By Steve Roulstone

It has come to my attention on two or three occasions lately that Building Societies are being particularly harsh in withholding permission when mortgagees apply to rent their property. For so many owners, renting has become the vehicle that has allowed them to move on with their lives, especially in a flat sales market and we as a National Company, have seen a vast increase in Landlords because of this trend over the last two years.

Permission Withheld!

But now it seems societies are withholding permission in some very strange situations and it would seem, with little thought to the reasons why and the consequences of their actions. The main target for their refusal would appear to be a Company let, which is where I cannot understand there stance, especially when the Company on at least two occasions has been HMCR the agency who look after accommodation for our forces personnel. Although in favour of the Societies, it would help if HMCR did not insist on a release clause for any immediate change of circumstances!!

Strange reasoning.

But the case I will concentrate on is one where permission was refused without taking any of the facts in to account and on appeal, the Landlord was told that not only would they not discuss the issue, take the individual circumstances in too account or consider the Company or the experience of the owner (Even though the amount left on the mortgage was small and represented less than 15% of the value of the house)  but that to tell the owner why permission had been refused would in their words ‘encourage the owner to commit fraud by allowing him to then state that the new conditions had been met, even if they had not’ To state that I was flabbergasted when I heard what was said would be missing how I actually felt by a short space trip!!

Human rights.

Now forgive me for raising this issue as Human Rights, but the last time I checked, in this Country you were indeed innocent until proven guilty and to make such a statement flies in the face of this fact with such impunity that it cannot be ignored. The last thing I would recommend would be for an owner to go against the wishes of their Mortgage Company and I believe in this case a re-mortgage is taking place with a Company who know and approve the situation (and I am made to believe at a cheaper rate to boot!) but come on Building Societies, the recent problems have not been caused by your paying customers, and to act it such an arbitrary way towards us is not acceptable. The least you could and should do is give individual consideration to each scenario and stop acting like some medieval Baron running your own court as both Judge and Jury!

Consequences

We are told that it is not in their interest to have houses re-possessed but really, what is happening if permission is not given or individual circumstances heard as against this blanket decision approach, is people who need to move to gain employment, are being forced to accept lower prices for property where if in negative equity, the effects could damage people’s lives for years to come, if not indefinitely! Not to forget that when statements like that repeated above are made, and such blanket policies are enforced, they merely prove themselves to be ignorant of how the rental market works and therefore unqualified to make decisions that have such an impact on our lives.

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