Tenant aware that landlord has mortgage arrears- effect?

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    #16
    rachelzander, Thank you for letting us know how you got on, I'm glad you can stay!

    Originally posted by rachelzander View Post
    And anyone wanting advice, dont rent unless you really have to cos its not worth your while and heart ache if something goes wrong
    Yes, it's bad. Especially bad that landlords let the property after falling behind with mortgage payments and worse after repossession has been started. The general advice to tenants is to check that the landlord has permission to let from the lender, not much protection but better than nothing.
    ~~~~~

    Comment


      #17
      Originally posted by rigsby99
      i have a landlord friend who has got himself behind on his mortgage payments. The property is unlet at the moment. Any suggestions about what to do with regards to the mortgage company - should he contact them or just hope for the best?
      Contact mortgagee AT ONCE. Most are willing to be reasonably flexible, to help mortgagors who have explained the difficulties, but they wil be harder on those who wilfully hold back until it's too late.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

      Comment


        #18
        On the subject of mortgage arrears and possessions generally, have a look at https://www.possessionclaim.gov.uk/p...ljGr5XDqQLvpAe - it allows you to search the court diary for any area that has the online system and you will see a list of cases with both claimant and defendant named.

        Personally I think it is disgraceful that this information is available publicly - alright its on the notice board at the court on the day of the hearing when anyone can see it but the "publicity" of the possession hearing is thereby confined to the local court and visitors on that day. With this court diary you can look through the whole UK database!!!!

        The other side of me says, why cannot we have a list of repossessed tenants available to landlords as a database - the info is already there and lets be right about this, the people taking defendants to court for possession usually but not solely are for arrears of rent or mortgage payments and whilst I have sympathy with people who have lost control of their finances and end up in court, I would still like to know if Mr. & Mrs. Bloggs stood before me applying for a tenancy are doing so because they lost their previous home due to rent or mortgage arrears. Possession actions which result in suspended orders are not entered onto the Equifax/Experian databases.

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          #19
          My landlord's in mortgage arrears- do I face eviction?

          hi, everyone here,
          i need some legal help about my situation,
          i am currently renting a proeprty, i recieved a notice of eviction letter from the court, because the landlord she didn't pay off the mortgage, and i had spoken to her, and she said she will sort it out, but i still worry about this eviction, what if she coudn't afford to pay off the mortgage, will I be evicted by the court? my tenancy agreement still got 8 months to go, is it still legal? and i really didn't expect to move and i don't want to move, i think this is really unfair, what legal action can i do?

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            #20
            Landlord did not pay mortgage; house will be repossessed

            we have been renting a house in essex for over a year and a half now, we have three kids and really like the house, the area and the neighbours are great, basically the ideal home . For some time now we have been a bit suspicious as the landlord has never been bothered about the vast amount of mail that comes to us in his name, and a few weeks ago i got a knock on the door from an agent acting on behalf of his mortgage company asking for him, i explained he dont live here as he lets the place out and we are the tenanats, it turns out the landlord has not been paying the mortgage for over 5 months and to make matters worse didnt notify or get permision from the mortgage firm that he is letting the place out, which means every time i tried speaking to the mortgage firm and their solicitors, they wont tell me anything as the dont have our names on record.
            What i would like to know is although we have an ast agreement with the letting agency( who also cant seem to contact the landlord), if the property does get repossed, do we have any rights as we never missed any rent payments and are still paying for now, also bearing in mind we have kids if we get a knock on the door if we havent found another place to rent and get told we have to vacate the property without notice, can we in effect become squatters. I dont like the idea of that, but also i would if i could get a mortgage like to buy this house if it does get repossesed, in this case how would i be able to stop it going on the open market to ensure we can buy it without the chance of anyone else .

            Comment


              #21
              1. The AST is between L (not Agent) and you.
              2. Did L obtain mortgagee's consent to sublet? Is it a BTL mortgage? If 'yes' to either or both, mortgagee cannot evict you unless L could have.
              3. Mortgagee can nevertheless sell the house subject to your tenancy.
              4. Why not contact mortgagee and offer to buy it?
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment


                #22
                Originally posted by jeffrey View Post
                1. The AST is between L (not Agent) and you.
                2. Did L obtain mortgagee's consent to sublet? Is it a BTL mortgage? If 'yes' to either or both, mortgagee cannot evict you unless L could have.
                3. Mortgagee can nevertheless sell the house subject to your tenancy.
                4. Why not contact mortgagee and offer to buy it?
                hello jeffrey, thanks for the reply, the L did not get mortgage company's consent to let the house out as they have no record of him doing so and thought that he was the person living here not us.
                When you say mortgagee does that mean mortgage lender( sorry for sounding a bit silly), if so i have also mentioned that i would like to buy but they said if it does get repossesed we would still be evicted while it goes on open market, surely if, and a big if, i can get a mortgage for this place wouldnt it be more simpler to deal with the lender instead of it going on market or auction, this would pose a risk on us losing the house to another buyer. Thanks Jeffrey.

                Comment


                  #23
                  Originally posted by darren a View Post
                  When you say mortgagee does that mean mortgage lender( sorry for sounding a bit silly)
                  Yes. Mortgagor = borrower. Mortgagee = lender.

                  Originally posted by darrena View Post
                  I would like to buy but they said if it does get repossesed we would still be evicted while it goes on open market, surely if, and a big if, i can get a mortgage for this place wouldnt it be more simpler to deal with the lender instead of it going on market or auction, this would pose a risk on us losing the house to another buyer.
                  Yes. Mortgagee would avoid delay and expense by selling to you, at full market value on a forced sale, but you cannot force it to.
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #24
                    Jeffrey, a letter came today with the court date which is only 15th oct so i dont have much time, (it was addressed to him so i know officially i'm not to read it but i need to know whats happening), would i need to attend the court hearing in order to purchase if can sort out mortgage , and do you think i should now stop paying my rent, or wait until someone comes knocking.

                    Comment


                      #25
                      My advice would be to not pay any more rent, but to keep that in a separate place so that it can be instantly produced or proven that you have provided for it.

                      Secondly, as to the court hearing - if its served on you, you can attend, but if your name is not on the summons, since the hearing is in chambers, you may not be allowed in though this can be at the discretion of the judge.

                      Write, dont phone, both the solicitors for the BS and the BS itself asking both A) if you can continue to rent the property from them either on a long or short term basis or, if they subsequently gain possession order then B) could you try and get a mortgage with either that BS or another and what timescale would they allow?

                      Thats really all you can do.

                      If the landlord eventually pops up and demands the rent - tell him to sue you and that inter alia, he would have to prove to court that he had permission to let the property from the mortgage company, which you now know he hasn't and that moreover you will counterclaim for damages for his breach of contract by failing to pay the mortgage thereby removing your security of tenure and causing your eviction as an innocent party!.

                      Comment


                        #26
                        L defaulted on mortgage; house to be repossessed

                        My landlord is having the flat repossessed by his mortgage lender at the end of the month and I have been given notice (but not yet a date) to be evicted. I paid my landlord for 6 months in advance and will have 3 months to run at the date of reposession. Can the lender still evict me or does he have to honour my rental agreement?

                        Everything I've read so far suggests that the lender does not have to honour the contract and can evict me as soon as they repossess the flat - are they really likely to do this or will they give me time to find somewhere else? Anybody have any experience of this? - must be more common in today's climate.

                        Comment


                          #27
                          Originally posted by Swallow View Post
                          My landlord is having the flat repossessed by his mortgage lender at the end of the month and I have been given notice (but not yet a date) to be evicted. I paid my landlord for 6 months in advance and will have 3 months to run at the date of reposession. Can the lender still evict me or does he have to honour my rental agreement?

                          Everything I've read so far suggests that the lender does not have to honour the contract and can evict me as soon as they repossess the flat - are they really likely to do this or will they give me time to find somewhere else? Anybody have any experience of this? - must be more common in today's climate.
                          Did L obtain consent of mortgagee (M) before he let the property to you?
                          If yes, M is bound by your tenancy. It can still sell the property, but that would be without vacant possession.
                          If no, M is not bound by your tenancy; L is in breach of mortgage conditions, by unlawfully subletting, and you'd have few rights.
                          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                          4. *- Contact info: click on my name (blue-highlight link).

                          Comment


                            #28
                            Landlord defaulted on mortgage; house to be repossessed

                            our landlord has stopped paying his mortgage and as a result his lender (northen rock) will be repossesing the house. We have been good tennants, and always paid the rent on time, our problem is we have been told by the letting agency they cant contact the landlord. My fears are that because we cant afford to pay for legal fees for advise, i dont know if we as tennants with a valid AST that doesnt run out until may 09 have any suportive rights where it comes to eviction. I have been told various things some people say when the bailiffs come we can get as little as 20 mins to get out and some people say they need to give min 2 months notice. I have contacted northern rock 3 times and their solicitors to tell them that our landlord dont live here as it turns out he dont have a buy to let or permission by the lender to let the house, but still nobody is writing to us or letting us know what id going on. We have 3 children so moving into family is out of the quetion and we are scared that we may be forced out without notice. Please please can someone let me know if we are entitled to any reasonable notice before being evicted, also we cant leave now as if the landlord comes out of the blue and puts a stop to the proceedings, we will then be liable to pay the rent for the remainder of the AST. Any advise will be greatly appreciated.

                            Comment


                              #29
                              Do you know when the court date is?? IF so attend court with your AST and show the judge they may be able to negotiate for you to stay. Have you offered to pay rent direct to the mortgage company?? This is another option open to you.
                              GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

                              Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

                              Comment


                                #30
                                Thanks.
                                I'm assuming that the lender knew L is letting it out as he has several similar properties. Are you saying that if it is a BTL mortgage the M is bound by the tenancy or does the M have to have specific knowledge of my tenancy?

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