Mrs Calcraft is renting out her son's cottage for him while he is on a short-term contract in Nigeria. She said: 'We proposed to use a reputable and long-established firm of estate agents in his area. On applying to the Midland, his mortgage lender, for permission to let we were told that they charge pounds 25 for the tenancy agreement and pounds 100 for perusing any other.
'Since assured short-hold forms are available from good law stationers and I am a CAB volunteer and know about tenancy agreements, this is very annoying.'
Midland Bank said that it had introduced the new charges for assured short- hold forms in the new year. It said it felt that the charge of pounds 25 was reasonable and that many other lenders charged extra interest. It also pointed out that some lenders would not allow the borrowers to rent out property. The pounds 25 does have to be paid each time the contract is renewed.
Midland said that it had to be sure that the borrower did not accidentally create a full tenancy agreement.
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