Amendment to AST for Ground 2 Schedule 2 of the housing act

[Hailsy]

Hi

Im in the process of remortgaging one of my properties and the mortgage lender is requesting an amendment to be added to the AST, to cover Ground 2 schedule 2 of the housing act 1988

This allows the mortgage lender to exercise the power of possession and sale over the tenants AST rights, with the tenants knowledge

I can't seem to find anything in the documents section so wondered if one of the members had a copy i could use?

Thanks

[jpkeates]

That sounds odd, because that notice has to be given before the start of the tenancy, and, presumably, the tenancy has already started.

The government's model tenancy agreement contains the terms you're looking for.

[theartfullodger]

Tenant does not have agree to or sign any amendments , changes or a new AST.

Easy way to get a new term is to offer a new AST with the amendment, at a lower rent , or a new fixed term to give tenant some more security of tenure.

[Lawcruncher]

There is no such thing as a ground 2 notice.

Ground 2 is as follows:

The dwelling-house is subject to a mortgage granted before the beginning of the tenancy and—

(a) the mortgagee is entitled to exercise a power of sale conferred on him by the mortgage or by section 101 of the M1Law of Property Act 1925; and

(b) the mortgagee requires possession of the dwelling-house for the purpose of disposing of it with vacant possession in exercise of that power; and

(c) either notice was given as mentioned in Ground 1 above or the court is satisfied that it is just and equitable to dispense with the requirement of notice;

and for the purposes of this ground “mortgage” includes a charge and “mortgagee” shall be construed accordingly.

It will be seen that (a) the mortgage must have been granted before the beginning of the tenancy and (b) the only reference to a notice is under Ground 1.

Ground 1 is as follows:

Not later than the beginning of the tenancy the landlord gave notice in writing to the tenant that possession might be recovered on this ground or the court is of the opinion that it is just and equitable to dispense with the requirement of notice and (in either case)—

(a) at some time before the beginning of the tenancy, the landlord who is seeking possession or, in the case of joint landlords seeking possession, at least one of them occupied the dwelling-house as his only or principal home; or

(b) the landlord who is seeking possession or, in the case of joint landlords seeking possession, at least one of them requires the dwelling-house as his, his spouse’s or his civil partner's only or principal home and neither the landlord (or, in the case of joint landlords, any one of them) nor any other person who, as landlord, derived title under the landlord who gave the notice mentioned above acquired the reversion on the tenancy for money or money’s worth.

It will be seen that Ground 1 is only available if the landlord occupied the dwelling as his only or principal home. It is not clear if that is a requirement for Ground 2, but presumably few people would serve a Ground 1 notice if they had never lived in the property. In any event, the notice must be served before the tenancy begins.

[jpkeates]

As I read it, surely, Ground 1 is available for a landlord who wants to move into a property to live, even if they hadn't lived there previously (1b) provided that they didn't buy the property with the tenancy in place.

So it would be prudent for any landlord to give the notice, just in case.

I can't see how that helps with ground 2, though.

[Lawcruncher]

As I read it, surely, Ground 1 is available for a landlord who wants to move into a property to live, even if they hadn't lived there previously (1b) provided that they didn't buy the property with the tenancy in place.

So it would be prudent for any landlord to give the notice, just in case.

You are quite right. I missed the "or".