Jump to content
House Price Crash Forum
Sign in to follow this  
Shamus

Landlord Served Court Notice Re Mortgage

Recommended Posts

Our landlord has received a court summons re mortgage payment. What happens if it doesn't get sorted out? Can they or the baliffs chuck us out?

Share this post


Link to post
Share on other sites

Our landlord has received a court summons re mortgage payment. What happens if it doesn't get sorted out? Can they or the baliffs chuck us out?

http://www.landlordzone.co.uk/forums/showthread.php?t=850 this link should help.

Basically as I understand it, as long as his mortgage provider agreed to him renting the property, your tenancy just continues with the new owners - ie the mortgage company when they repossess. However, I would expect to be evicted as soon as they can do it.....depending if you are in the fixed term of your agreement or not, at least 2 and a half months time, possibly more. Of course, the concern would be that the landlord may not have agreed with the mortgage company to let the property, in which case you have problems. I would say the case for this is more possible, due to the fact he is behind on his payments. This means he almost definitely has a repayment mortgage, whereas most buy to let mortgages(although certainly not all) are interest only.

Share this post


Link to post
Share on other sites

Most mortgages have a condition that the property cannot be let without the prior written consent of the lender. Landlords should always seek the consent of the lender before letting their property.

This is important because any tenancies granted without the consent of the lender and after the date the mortgage was taken out will not protect the tenant(s) against the lender.

This means if the landlord falls into arrears with his / her mortgage repayments and the lender repossesses the property the tenant(s) will be evicted.

The tenant will have no right to stay in the property, but may have a right to sue the landlord for compensation.

If however, the lender does something to recognise the tenant as a tenant, such as accepting rent from the tenant, then the tenant may be able to defend the repossession and argue that the lender has created a new tenancy with them.

If a tenancy was granted before the date of a mortgage then the tenant may be allowed to stay in the property. This applies if the tenancy is a lease for a period of not more than 3 years, or a lease for a period not exceeding 21 years.

If a tenant wishes to sue a borrower (i.e. the landlord) because their tenancy is invalid, because it was created after the date of the mortgage the tenant should apply to be joined as a defendant to the repossession proceedings and claim compensation against the landlord for breaching their right to peacefully enjoy the property. If there is sufficient equity in the property the tenant's claim could then be settled on the sale of the property.

Share this post


Link to post
Share on other sites

Thanks for your replies. I will certainly investigate further. I am coming to the end of the 6 month tenancy agreement. What I am worried about is getting back the deposit from them. I have one more rent payment in January. Perhaps I should hold onto that payment as a form of insurance by cancelling the direct debit?

Share this post


Link to post
Share on other sites

In this situation, I would probably advise that course of action, yes. Just be careful how you handle it, I would probably be quite upfront about it and tell him what you are doing and why you are doing it etc. Out of interest how did you find out about the defaulting mortgage?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.