Landlords Mortgage gone into default

DireEmblem

Hi,

We have recently received a letter from a Solicitor stating that our landlord has gone into default on his mortgage, and I am hoping some people here will be able to shed some light on what is to come.

We currently rent our property through a letting agency who hold our deposits, so through this I can only assume they are safe.

Unfortunately this news has only came to us this friday(26th) after most offices have shut.

We have attempted contact with our Agency, along with the Solicitors.

Given some research, I believe that a court order has to be issued in order to evict us, of which we are given 60 days, and that we can fill in a N224 form, so that we are included in all legal correspondance on this matter(is this correct).

As far as we are aware, we have 4 outcomes:-

1:- The landlord mysteriously manages to pay of the arrears, and we carry on as we are.

2:- Another party buys the property from the bank, and continues to rent out to us.

3:- Another party buys the property, and we have to leave.

4:- We buy the property.

Has anyone any past experience with this. We are unlikely to gather any more details until monday.

I am also assuming that given route 2/3, we may also have to leave the property.

Thanks,

Dire.

G_M

There is a 5th possibility. The lender seeks vacant possession of the property and applies to the courts to evict you, in order to sell the property empty. This is the most likely.

1) Check that your deposit is registered with one of the 3 authorised schemes.
2) start looking for a new place to rent.

How do you pay your rent? To the LL? Cash or BACS? receipt? Or to an agent? Make sure there is a paper trail/receipt as proof your rent has been paid.

Did the letter say anything about this, like that the lender has taken over the property and is now your landlord?

You might want to consider putting your rent into a separate account rather than paying it to the LL who is clearly not passing it on to his lender. However take advice first as witholding your rent is a serious step. It depends where in the process this letter relates to.

More info from Shelter here.

VIGILANT22

http://england.shelter.org.uk/get_advice/repossession/repossession_by_a_landlords_lender

DireEmblem

No, our rent is paid through an agency, of which the agency also hold our deposit.

We are on a monthly rolling lease, in which at least 6 weeks notice must be given prior to ending the contract.

clutton_2

our rent is paid through an agency, of which the agency also hold our deposit.


when exactly did you move in and when did you sign your last tenancy agreement, and have you a Section 21 Notice anywhere in your paperwork from the agency......

these answers will help us help you

6 weeks notice is rollocks !!! no tenant EVER has to give more than one calendar month (if they get the timing right -we will come to that)

G_M

of which the agency also hold our deposit.

If your tenancy started after April 2007 it is illegal for the agent to hold your deposit. CHECK that it is in one of the 3 scheme on the link I gave you.

at least 6 weeks notice must be given

If you are on a rolling monthly periodic tenancy, you only have to give 1 months notice as long as your notice ends on a rent pay date. eg if you pay rent on 1st of month and want to leave on 1st April, your notice must be received by the LL by 1st March.

franklee

Have you checked to see if the tenancy is binding on the landlord's lender? If not do that using the shelter link posted above for guidance. The answer will change the notice you are entitled to be given should they wish you to leave. The normal advice is for a tenant to ask to see consent to let before taking the tenancy, so that's worth your doing next time, but for this tenancy I'd start by asking so see such proof now if you haven't done so already.

Also do look to see if you were served a Section 21 notice requiring possession in the past, agents often do this shortly after the start of the tenancy. Unless something is done to void it (like signing up to a new agreement) a valid S21 remains valid even after you go onto a periodic tenancy and can be actioned at anytime by the LL applying to court for possession.

Once you know how much if any notice you are entitled to you will know how much of a rush you are in to move.

franklee

clutton wrote: »

6 weeks notice is rollocks !!! no tenant EVER has to give more than one calendar month (if they get the timing right -we will come to that)

Disagree, it depends on the tenancy agreement. The OP may not be on a statutory periodic tenancy. If he is on a contractual periodic tenancy then notice required from the tenant would be what the contract says, unless the landlord has served notice of course. You are only right if the tenant is on a statutory periodic tenancy when it's minimum a month ending at the end of a period.