Huurbeding
Lease Clause
A rental restriction clause is a provision in a mortgage deed by which the mortgagor undertakes not to let the mortgaged immovable property without the prior consent of the mortgagee.
The letting restriction is a contractual limitation routinely included by banks in mortgage deeds to safeguard their security. Under this clause, the owner may not let or lease the property without the lender’s prior written consent, as letting may reduce the forced-sale value or hinder disposal of the asset.
The restriction applies to both residential and commercial mortgages, since unauthorised letting may render the loan immediately repayable or activate penalty provisions. In practice, notaries and banks monitor compliance closely at execution of the deed and upon any subsequent change in the property’s use.
Breaches of the restriction are common in lettings arranged through platforms such as Airbnb and may give rise to legal proceedings or forced sale.
“The mortgage deed contained a no-letting clause, pursuant to which the owner was not permitted to lease the property without the prior consent of the bank.”
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