Landlord has 3 months mortgage arrears

piranhalikethat

Should we be worried?
We rent through an agency so have our deposit protected and all that, but we've received a letter addressed to the owner of the house (first one we've had) and mistakenly opened it as his and my names look similar at a glance.
It said the payment arrangement had failed and the 3 months arrears were due immediately.
The agency said not to worry but I am! Should we move now, even though we have 3 months tenancy left on contract?

joolsybools

I don't think you will be able to get out of the contract whilst it still has 3 months left to run, unless the bank repo the house in which case I think you have to get out. I'm sure it will be put in writing if it comes to that. I would certainly try to be getting another deposit together gradually if at all possible in case you do have to move as most of the time you don't get your deposit back until after you have had to put one down for somewhere else.

piranhalikethat

Thank you for your advice.

Aren't there certain checks that landlords have to be approved by before they're allowed to let, like tenants before they're allowed to rent?

tbs624

(Assuming property is in Eng/Wales)

Write to the lender explaining that you are renting the property and enclose a copy of your tenancy agreement. Keep a copy of your letter.

The fact that they have written to your LL at the rented property is a pretty clear indication that the LL has not sought Consent to Let.

Legislation brought in last October means that if repossession is sought by the LL's lender you are entitled to a minimum period of notice.

Is your tenancy deposit registered with one of the three schemes as required by law?

SouthCoast

Advice from Shelter:

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

tbs624

piranhalikethat wrote: »

Thank you for your advice.

Aren't there certain checks that landlords have to be approved by before they're allowed to let, like tenants before they're allowed to rent?

LA ( and you) should have asked whether LL has sought consent to let - there is no specific legal requirement for them to have sought it and told you, although the LL will be in breach of his mortgage terms if the property has been bought on a resi mortgage.

Ts have to have confidence to ask questions about their LLs circumstances

mustrum_ridcully

tbs624 wrote: »

LA ( and you) should have asked whether LL has sought consent to let - there is no specific legal requirement for them to have sought it and told you, although the LL will be in breach of his mortgage terms if the property has been bought on a resi mortgage.

Ts have to have confidence to ask questions about their LLs circumstances

I've always said that information requested by a LL should be on a quid pro quo basis with the tenant. If a LL wants references off the T then the T should be able to request references for the LL with no moaning from the LL (I'd actually like to see this written in law).

I think the reason Ts don't ask is they're worried about upsetting the amateurish BTL LL who'll throw a hissy-fit and refuse to let the property to them.

The current situation is perverse in a way, it goes against the traditional customer - service provider relationship. How many people look at hotel reviews when booking a weekend break for a few £100, but when looking at renting a flat/house it's "doh-kay I'll pay you £1000's a year"?

piranhalikethat

Our deposit is with DPS, so pretty safe I hope.

I guess I just assumed that, because the agency checked us as tenants for the landlord, they would have checked him out before agreeing to act for him. Will know for future now!