Advice on what to do?! Landlord court date for mortgage arrears

DVardysShadow

Is your deposit in a scheme? If it is, then just follow the contract. If it is not, withhold rent to no more than the value of the deposit until it is confirmed to be in a scheme, but tell the Agent that withheld rent will be released. I only advise thsi course of action where it appears that the property may be repo'd. Otherwise, pay.

spongerob500

DVardysShadow wrote: »

Is your deposit in a scheme? If it is, then just follow the contract. If it is not, withhold rent to no more than the value of the deposit until it is confirmed to be in a scheme, but tell the Agent that withheld rent will be released. I only advise thsi course of action where it appears that the property may be repo'd. Otherwise, pay.

The property will be repossessed, as we're unlawful tenants. I spoke to the solicitors who are representing the mortgage lender and they said that we should look elsewhere for a property. I have another meeting with the council housing team, so lets see what happens next. Is it true that the council do not advertise all of their properties that they have for people in awful circumstances so they can be re-housed quickly? I say this because people have to bid on the properties with the home options scheme.

spongerob500

DVardysShadow wrote: »

Is your deposit in a scheme? If it is, then just follow the contract. If it is not, withhold rent to no more than the value of the deposit until it is confirmed to be in a scheme, but tell the Agent that withheld rent will be released. I only advise thsi course of action where it appears that the property may be repo'd. Otherwise, pay.

yes the deposit is in a protected scheme.

blckbrd

On the bare facts you present - family, 4 young children, unintentionally homeless - your LA would have a duty to house you under homeless legislation. That duty also applies when you are imminently homeless.

Don't let the LA fob you off - in your circumstances, they should be offering more assistance than telling you to look for a private let.

It may be necessary to place in in BB - depends on local policy. Some councils also operate private sector leasing schemes in which they house the homeless temporarily. You can request a copy of policy strategy documents so at least you can tell if what should be done is being done. Here's a link an example so you know what to ask for or where to look onthe council website if the docs are posted there: http://www.islington.gov.uk/Housing/housingpublications.asp

One of the downsides of LA housing, be it temp or secure accomodation, is that you will have two choices - to take the offer or go about your business unless there is an valid reason for refusal. Desirability/undesirability of the area will not be a factor/valid reason for refusal. If you don't accept what's offered the LA may have no further duty towards you.

As stressful as it must be for you try and arm yourself with information. If there's time, write to your local ward councillor and get him/her to poke the council for you.

Good luck OP.

DVardysShadow

spongerob500 wrote: »

The property will be repossessed, as we're unlawful tenants.

That is actually a very misleading statement from the lawyers of the lender, who have no obligations to you and a duty to help the lender. They can accurately say that the Landlord has tenants unlawfully - but the fact is that in every respect except one, your tenancy IS legal and would be upheld by a court. So don't take on board BS from your adversary's lawyer, they cannot give you legal advice and you should not take it form them. Unfortunately, the only respect in which a court will not uphold your tenancy is your current situation, the Landlord defaulting and the lender seeking repo.

I spoke to the solicitors who are representing the mortgage lender and they said that we should look elsewhere for a property. I have another meeting with the council housing team, so lets see what happens next. Is it true that the council do not advertise all of their properties that they have for people in awful circumstances so they can be re-housed quickly? I say this because people have to bid on the properties with the home options scheme.

The above is why you should not take legal advice from the solicitor of another party in the case. If you leave before your term, as I said above, the tenancy is still valid and the Landlord can take action to recover rent from you - you make it especially easy if you move out before a repo - and remeber the landlord is in a desperate situation, so he might be more inclined. As for the council, they will take no notice until you are on the street.

roger196

spongerob500 wrote: »

The property will be repossessed, as we're unlawful tenants. I spoke to the solicitors who are representing the mortgage lender and they said that we should look elsewhere for a property. .

I take a very different view on the situation. It would be worth reading thru the thread I started on 30th Sept on "tenants evicted when LL repossessed" (ps can someone tell me how to put in the link to this). The first para states:-
Civil or Criminal
If the landlord did not have a BTL ( buy-to-let) mortgage, then the landlord falsely pretended to the tenant that he was able to grant a 6 month AST giving the tenant peaceful enjoyment of the property for six months. Thus the rent was obtained by false representation. This is a criminal matter under S.2 of the Fraud Act 2006. Fraud by false representation occurs when a person dishonestly makes a false representation (express or implied), to make a gain for himself or to cause loss to another (e.g. the loss of the tenancy)
The bank may then be in possession of the tenant’s money (if the rent was used to pay the mortgage) falsely obtained and that it should be returned to the tenant under S.240 of the Proceeds of Crime Act 2002.
If you want to play hardball, try the following. Suggest you put this to the lender's solicitors as to when they propose to return your money. Suggest that you will forego this money in return for two months rent free at the property to give yourself sufficient time to find somewhere else to live.
You need to be careful not to suggest that the lenders have themselves acted fraudulently.

DVardysShadow

roger196 wrote: »

I take a very different view on the situation. It would be worth reading thru the thread I started on 30th Sept on "tenants evicted when LL repossessed" (ps can someone tell me how to put in the link to this)

The link in question.

You do this using the globe and chain link item on the edit window, although newish posters are not allowed to post links

As for the merits of what you say, I believe that you are probably right in the para you quote above, except that it would probably take time and effort to make the 'Proceeds of crime' bit stick - because the police and CPS like to have the monopoly of crime cases and it is not going to be easy to get the police on board to effect a recovery - plus I am wondering whether the Proceeds Of Crime legislation has provision to reimburse victims - it seems more oriented to taxing crime for government benefit.

But, I think if a tenant can get a judgment against a repossessed Landlord, it may be possible to extend the order to require the lender to reimburse the tenant from any surplus. Tenant will need to be fairly nifty with court work at a time when their lives are turned upside down by a forced move.

roger196

If you speak to lenders solicitors, ask them on what date did the lender first become aware that letting was taking place whilst there was no buy to let consent.

chappers

Not a perfectly legal answer, but why not just not pay the rent until you have enough to pay a new deposit, stay where you are until the end of your tenancy and then rent somewhere else.

spongerob500

chappers wrote: »

Not a perfectly legal answer, but why not just not pay the rent until you have enough to pay a new deposit, stay where you are until the end of your tenancy and then rent somewhere else.

Me and my family will be homeless before the end of my tenancy (which is supposed to end Feb '10) So therefore I have to find altenative accommodation.
UPDATE: I have applied for a privately rented house today. What makes me laugh is the potential new letting agent has to ask my LL for a reference (as stated in previous posts 1) she is abroad, 2) the reason for us becoming homeless and 3) only contactable via email, of which she doesn't reply!

I am seriously considering claiming some sort of compensation from my current letting agents for not properly checking out my landlady. I have an appointment with CAB thursday, to discuss this. Will be moved (hopefully) within 4 weeks.