landlord getting repossessed advice needed

carlislelad

my daughter is in the process of buying the house she is renting off her landlord, and has a mortgage agreement in place, however the landlord has been dragging her feet in signing the papers, also hassling her to pay the rent a few days early each month, now the landlord has said that the mortgage company (mortgage express) intend to repossess the property in 2 weeks time.
I think the landlord wants to be declared bankrupt to wipe all her debts. off rather than sell the house and still owe £20,000

does anyone know if there is a way my daughter can buy the house off the mortgage company or lease it from them until she finds somewhere else
thank you in advance

Ian_Griffiths_Halifax

The lender can instruct an LPA (Law of Property Act) Receiver to manage the property and collect the rent. The Landlord wouldn't then need to go bankrupt, but she may want to do so due to other debts anyway.

An LPA Receiver would then be able to control the property, collect rent and speak to your daughter about buying the property if it is in the lenders interest for her to do so.

They may not want to sell it if the property is getting a decent rent and is in heavy negative equity, but if it's borderline, they may be happy to do so.

Does she have an Assured Shorthold Tenancy Agreement, and if so, when does it expire? She would be able to stave off repossession until the AST ends.

clutton_2

""She would be able to stave off repossession until the AST ends.""

i dont think this is necessarily true = i always thought that the legal contract between the lender and the owner took precedence over the rent contract between the owner and the tenant

Ian_Griffiths_Halifax

clutton wrote: »

""She would be able to stave off repossession until the AST ends.""

i dont think this is necessarily true = i always thought that the legal contract between the lender and the owner took precedence over the rent contract between the owner and the tenant

I can assure you that it is, but Tenants aren't aware and if they were to advise the Lender/LPA Receiver and show them a copy of their Tenancy Agreement and tell them that they can't repossess while they have a Tenancy Agreement, they would be ok. If they don't want to agree to the Tenant staying in the house, then the tenant should tell them to take them to court and the courts would grant them to stay in the house until the AST ends.

As an AST is usually 6 months but can sometimes be 12 months, and usually the repossession would take place part way through the AST, the lender wouldn't normaly have to wait very long before it ends anyway. However, as I said, if the LPA Receiver thinks it is in all parties best interest to rent the property out, they may grant further ASTs to the same tenant or get new tenants if they left of their own accord.

Might I just add that this only applies where the property is let out with the Lenders consent. So the borrower would have needed to have got either a "Consent to Let" from the lender, or to have arranged the mortgage as a "Buy to Let".