might expect a simple ‘Yes/No’ answer to the following question within
the CML Handbook Part 2 : Does the lender require counterpart/certified
copy tenancy agreement to be sent to you?
In
recent years lenders have shoehorned in all sorts of obligations into
their Part 2 requirements and last night’s changes are a good example of
how lenders utilise Part 2’s to expand their legal conditions to
conveyancers.
Investec and The Mortgage Works in answering question 6.6.3 as to whether they require a copy of the tenancy state as follows:
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/Investec 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 or Corporate
Company 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 limited company).
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).
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.
agreements or tenants that do not meet the above requirements are not
acceptable and TMW/Investec must be informed immediately.
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