Landlord did not tell provider - Tenants rights?

Legolasoftheshire

Hi there all,

Sorry in advance for the long message.

We have just found out that our private landlord didn't tell their mortgage provider that they are letting out the property and would like to know what our rights our in this situation?

We only found this out because a surveyor came round to value the property and he asked if we were the owners. Obviously I told the truth and said we were tenants as we assumed everything was above board. He also asked us how much we were paying rent which I was happy to tell him.

The landlord then calls us the next day asking "what did you tell the valuers?" and that they may be refused the mortgage in which case we would have to leave the property.
It also turns out that in a panic the landlord told the valuer on the phone that I was actually her boyfriend and we are living together at the property!

So now I have been thrown into all of this without my consent and my girlfriend who is also a tenant is very angry to say the least!


We plan to have a face to face meeting with the landlord in the next couple of weeks to discuss what can be done about the situation. I would like to know what our rights are as tenants in these circumstances?

What would be the likely outcome if the landlord came clean with their provider?

If we are told to leave, what would be our options? We have only just moved in so it would mean a huge inconvenience to us and further expense. We would prefer to stay for the full term stated in the assured shorthold tenancy agreement.

If the landlord can sort it out with the lender but has to change to a higher rate on their mortgage, can they then put our rent up?


I would really appreciate any advice or suggestions.

Thanks :undecided

lee111s

If you've signed a tennancy agreeing a value of rent for a specified time (6,12 months) then I don't think that the landlord can put up the rent, or evict you as you're in contract.

You might find that if he is refused BTL then he may well have to pay you conpensation to leave, if that's something you would agree too.

People with more knowledge about landlords, tennants and their rights will be along soon.

Foxy-Stoat_3

Assuming you have signed a tenancy agreement, given a deposit, received the deposit protection information, been issued a EPC and had site of gas safe certificate for any gas appliances and the appropriate Landlord's Insurance has been taken out.....there is no sense in worrying as you will not be able to do anything about it.

If the Landlord has let without consent then the worst that can happen is the lender tries to repossess the property, which can take anywhere from 3-6 months, maybe more, assuming the mortgage has been paid and is being paid then this is unlikely, but a possibility. The least that will happen is the Landlord has to fill in some forms and get the consent retrospective. They cannot put the rent up no, not until your tenancy is due for renewal.

I wouldn't worry about it though, not much point in having a face to face meeting as this wont achieve anything.

You have rights as tenants, but the lender has rights to act in the terms of the mortgage contract, if they so wish. Provided the lender would of agreed the consent then they probably will, ie, 75%LTV max, the rent is 25% more than the mortgage, they have had the mortgage for at least 6 months etc etc.

Wonder why the valuer was there in the first place though, maybe he was re-mortgaging?

Don't understand the bit about being refused the mortgage as surely they would already have the mortgage, unless they are moving lenders.....

Good lucks

nidO

Foxy-Stoat wrote: »

Wonder why the valuer was there in the first place though, maybe he was re-mortgaging?

Don't understand the bit about being refused the mortgage as surely they would already have the mortgage, unless they are moving lenders.....

Sounds to me like the landlord was trying to remortgage or switch deal from a residential mortgage to another residential mortgage.

OP: You and the mortgage company basically hold all the cards here, the landlord is the one acting fraudulently and he can't demand you leave if you have a signed tenancy agreement, if he tries to kick you out your answer is basically "!!!!!! off, or make it worth my while".

Foxy-Stoat_3

nidO wrote: »

Sounds to me like the landlord was trying to remortgage or switch deal from a residential mortgage to another residential mortgage.

OP: You and the mortgage company basically hold all the cards here, the landlord is the one acting fraudulently and he can't demand you leave if you have a signed tenancy agreement, if he tries to kick you out your answer is basically "!!!!!! off, or make it worth my while".

If they are switching lenders then they won't grant consent as they normally like a new mortgage to be 6-12 months in to give consent.

TartanSaver

Cancel the face to face meeting. This is the landlord's problem, and has nothing to do with you. Make sure you have a photocopy of the lease kept somewhere other than the property. Do you have details of the deposit scheme? If not, ask the LL (in writing) which tenancy deposit scheme he has used. Even if the mortgage company repossesses the property, they cannot bring an action to end your valid lease until the end of the term in the AST. How long does the lease specify? You may well be given notice for as soon as he can get you out - which will be the end of the AST. Do not accept anything shorter unless he's willing to pay you for the inconvenience. Your LL would expect you to honour the AST, you should hold him to the same.

Legolasoftheshire

Wow! Didn't expect so many replies so quickly, thank you all for your advice and comments. That's certainly put my mind at ease.

I made sure when we took the property on that 2 copies of the AST were signed by both parties.

The term stated on the AST is 12 months.

We paid a deposit via bank transfer but apart from the section within the AST titled "FIRST SCHEDULE (Special Conditions under TDS Deposit Protection Scheme)". It states that the deposit is held by the Landlord. We have no other information regarding this.


Yes, I also thought the landlord may be trying to remortgage. Strangely enough, we actually had 2 different surveyors come round on the same day which neither of us were expecting.


I have always rented so don't have much experience with mortgage providers, but I had the understanding that if they repossess the property then the contract we had with the landlord becomes void?


Thanks again for the advice so far everyone!

Tansy_1980

All landlords need to get their lender's permission to rent out a property, if they financed the purchase with a residential mortgage. But, I bet lots don't bother. It becomes a real problem if the landlord runs into money problems and the property is repossessed - if the landlord didn't tell the lender or the landlord didn't comply with any terms established by the lender when granting permission to rent (minimum rental charge, maximum tenancy term etc) the lender doesn't have to honour any agreement. This means that the tenancy agreement is null and void and the lender can easily get a possession order, making the tenant homeless.

Good landlords get consent. I wish it was one of the things you had to produce before you could market a property and that there was proper licensing of private landlords, but some landlords don't like the idea of regulation...

Foxy-Stoat_3

Tansy_1980 wrote: »

This means that the tenancy agreement is null and void and the lender can easily get a possession order, making the tenant homeless.

"Easily" - "Possession" are not usually used in the same sentence. The tenancy agreement cannot be voided if the Landlord has not got consent from the lender.

Foxy-Stoat_3

Legolasoftheshire wrote: »

We paid a deposit via bank transfer but apart from the section within the AST titled "FIRST SCHEDULE (Special Conditions under TDS Deposit Protection Scheme)". It states that the deposit is held by the Landlord. We have no other information regarding this.

If you do not get the prescribed information within 30 days of tenancy let him keep so he cannot issue you with a section 21 notice and you can sue him for upto 3 times the deposit.

Pixie5740

Foxy-Stoat wrote: »

"Easily" - "Possession" are not usually used in the same sentence. The tenancy agreement cannot be voided if the Landlord has not got consent from the lender.

Yes it can. See G_M's post about repossession.


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