Rental clause: how do lenders deal with it?

In virtually all mortgage agreements that were concluded in the past, the lender prohibited the homeowner from renting the house entirely or partially without the prior consent of this lender.

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The old-fashioned rental clause

The idea behind this stipulation is that the lender wants to be able to sell the house empty in case the consumer does not meet his payment obligations. Tenants have a high legal protection in the Netherlands. For a bank it is then difficult to sell the property without the tenants. A property that is partly rented out provides too little to repay the mortgage debt entirely or for the most part.

Times change

As we have already seen in this newsletter, there are several changes that also affect the rental clause. For example, there are lenders who just give a mortgage to consumers who will buy a home with it and subsequently rent it out. Then such a rental clause is of course nonsense. There has also been legal protection from consumers with a mortgage since 2016, which means that a lender must make a strong effort to prevent the need for forced sale.

Family to 2nd degree

Recently, a lender introduced a new mortgage that allows the consumer to partially rent the home in which he lives to relatives up to the second degree. Such a situation is expected to occur more and more frequently in the coming years. For example, in the case of elderly people with a large home whose children can not have their own living space after a divorce or grandchildren who have to wait for a social housing or save for a number of years in order to buy their own home. In the context of informal care, it will also become increasingly common for a family member to live in it.

Subletting has the necessary consequences

Irrespective of whether the mortgage lender does or does not give permission for the leasing of (a part of) the building where a mortgage is based, such a rental sometimes has far-reaching fiscal, legal and financial consequences for both the owner of the property and the tenant.

First discuss with us

Do you have a house on which a mortgage rests? Or do you want a mortgage that gives you the right to rent out the house in part in the future? Then come and talk to us before you conclude a rental agreement with someone. We can then discuss with you the arguments that motivate the lender to agree with (temporary) letting. Or to choose a lender who in advance agrees with this rental.