Repossession of property with tenants in residence

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    Repossession of property with tenants in residence

    I have tenants in a property on a new 6 month AST agreement. A 2nd party bank, which has a 2nd legal charge on the property, is threatening to take legal action to force the sale of the property to recover monies owed to them. The 1st legal charge is held by the principal mortgage company. What rights do the tenants have should the 2nd bank move via the courts to force a sale and how long can the tenants stay there in such an event? I might hold off the bank until the end of the AST and sell then, but the tenants are a nice family with 2 young children and I don't want to cause them undue stress. HELP!

    #2
    Possession

    One of the mandatory grounds for possession (ground 20) gives a mortgage company a right to re-possess:

    http://www.landlordzone.co.uk/ground...possession.htm

    "Ground 2 - This ground is used by a mortgagee wishing to gain vacant possession in order to exercise a power of sale. Notice will need to have been given to the tenant. The mortgage must have been taken out before the tenancy began and the the tenant warned about this contingency within the tenancy agreement."

    The only way your tenants may get some relief is if they go to court themselves and plead hardship - the judge may they give them some extra time.

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