Suspect landlords doesn't have banks consent to let... mortgage arrears of 7k

michaelaet85

Hi,
Hoping for some advice. I moved into a rental property 7 days ago which is let and managed by a local estate agents who are members of arla. I Still have most stuff in boxes so not even unpacked yet. On wednesday a letter arrived which one of my children opened . It was addressesed by name to the woman who owns the property and is listed as my landlords on the ast agreement. Ietter is from the bank and states they are in arrears to the tune of 7.5k and that despite repeated requests they have not cleared the arrears.

First thing I did was ring estate agents who manage the property. They said to pass them any further letters and it was all a mistake,.they State that the mortgage is being paid each month as they pay the bank directly on the owners behalf. They said at one point the owner was in arrears but these had been cleared and it was a mistake by the bank in the letter... pretty sure banks don't make those kind of mistakes in their correspondance,

Anyway my suspicions are aroused by several things... firstly that their mortgage correspondance is coming to the rental property. Secondly a search of the land registry shows they purchsed the house in 2007 and their address given is the same as the rental property... electoral roll shows she (the owner on the electoral roll at another property in the borough between 2005-2013. Hence why I believe they don't have a buy to let mortgage or consent to let from the lender. This is obviously important as it means my ast is not legally binding should the bank start repossession proceedings.


I have asked the estate agent to provide proof that they have consent to let although I am aware legally they don't have to show it to me... Also I only have an address for them which is the agents office, the iwners moved a couple of months ago to south africa (agent told me) but I am aware under section 1 of the tenants and lanlords act 1985 I can request in writing and be provided eith it in 21 days their actual residential addesss. what else should I be saying to my agent and what do others think.

Many thanjs

G_M

Have you actually contacted the landlord?

Why are you passing personal letters addressed to the LL, to someone else (the agent)? Just because the agent manages the property does not mean they should receive the LL's mail!

This post gives useful advice in the eventuality of the mortgage lender repossessing:

Repossession (What happens if a landlord's mortgage lender repossesses the property?)

But speak or write to the LLnand request evidence he has the consent of xxx bank to let the property, and reassurance that the mortgage is paid up to date.

thequant

G_M wrote: »

But speak or write to the LLnand request evidence he has the consent of xxx bank to let the property, and reassurance that the mortgage is paid up to date.

I'd say contact the bank for proof of consent to let.


Banks are quite interested in LL who don't seek permission and have stiff penalties.


reading through the small print on my mortgage earlier, if I let my property without their consent I would be stiffed with a serious interest rate hike.

pineapple123

The estate agents have no Idea if the morgage is being paid just because they pay the rent into the landlords bank means nothing but your landlord still has an active bank account it doesnt indicate that the morgage is being paid. The morgage money may not even come from your landlords bank anyway he could pay via a B/S account or someone elses bank account. The estate agent would have no access to this information.

Just to add you cannot ask your lanlords bank for proof of consent to let, they are not at liberty to tell you under data protection.

Okydoky25

Had the identical happen to us. We was hounded by debt collectors the whole time we were there. Any problems never got addressed I suspect due to lack of funds. I finally negotiated an early release when they wanted to try and sell before they were repossessed and they wanted me to allow viewings and funnily I refused! Nightmare start to finish!
I reported to their mortgage company and HMRC and gave their true address to all their debtors.

G_M

pineapple123 wrote: »

The estate agents have no Idea if the morgage is being paid just because they pay the rent into the landlords bank .

OP said:

estate agents .... State that the mortgage is being paid each month as they pay the bank directly on the owners behalf.

from which I understood them to mean the agent pays the LL's mortgage lender (bank).

Unusual, but possible.

michaelaet85

Cannaot contact landlord as I have no phone number, email or address for them, only the agents address. As I say agent said they were out the country living. Its only in the last day or so I have found out that law states I am entitled to know landlords actual address so i will be requesting this.

I contacted mortgage lender and they are unable to tell me anything due to dpa. I did however infirm them that the property is tenanted and has been for some time and they are out the country

Okydoky25

michaelaet85 wrote: »

Cannaot contact landlord as I have no phone number, email or address for them, only the agents address. As I say agent said they were out the country living. Its only in the last day or so I have found out that law states I am entitled to know landlords actual address so i will be requesting this.

I contacted mortgage lender and they are unable to tell me anything due to dpa. I did however infirm them that the property is tenanted and has been for some time and they are out the country

Write to the agent asking for your landlords address.

Thrugelmir

michaelaet85 wrote: »

Cannaot contact landlord as I have no phone number, email or address for them, only the agents address. As I say agent said they were out the country living. Its only in the last day or so I have found out that law states I am entitled to know landlords actual address so i will be requesting this.

I contacted mortgage lender and they are unable to tell me anything due to dpa. I did however infirm them that the property is tenanted and has been for some time and they are out the country

You are behaving in the correct manner.

Suggest you start looking for alternative accomodation on Monday.

Yorkie1

Thrugelmir wrote: »

You are behaving in the correct manner.

Suggest you start looking for alternative accomodation on Monday.

I don't think this is good advice.

OP has signed a valid tenancy agreement and moved it. The existence or otherwise of consent to let doesn't invalidate the contract, and it doesn't entitle the tenant to unilaterally end the contract.

Even assuming the letter is accurate and the LL owes money, the tenancy remains in force unless and until it is brought to an end legally i.e. at the end of the fixed term, through mutual agreement, or earlier by a court repossession order (before which point the T would have received correspondence to 'the occupier' and have had the opportunity to request 2 months' grace period from the court to move out).

If the owed money is repaid before any court hearing, it's likely that the bank won't get an immediate repossession order, so again the tenancy continues.

If OP looks for alternative accommodation now and moves out without the written consent to the ending of the tenancy, they will remain liable for the rent and bills on the property until the tenancy ends or a new tenant is found, whichever is sooner. OP is only 1 week into what will be a tenancy of 6 months or more.

Thrugelmir

Yorkie1 wrote: »

OP has signed a valid tenancy agreement and moved it. The existence or otherwise of consent to let doesn't invalidate the contract, and it doesn't entitle the tenant to unilaterally end the contract.

I was referring to the longer term. As once the lender is aware of the situation. The clock starts ticking.

The agent appears to be blantantly lying. Nor has the landlord acted in the correct manner. Sometimes common sense prevails in the eyes of the law.