repossession and tenants in property

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  • repossession and tenants in property

    i ve got a tenant that who has not paid for months,ive given her a section 21 and still she wont budge.
    due to her owing me a couple of thousand i fell behind with the mortgage and have now agreed with the mortgae company to do a voluntary surrender.
    tenant will still not budge can someone advise me what my obligations are what the consequences will be of them repossessing while she still stays there

  • #2
    In the long term, the house will go to auction, and may make considerably less than you paid for it (I don't think banks tend to dilly-dally with reserve prices, they just get as much as they can, and get it off their hands asap).

    So, unless you have large equity in the house you could still be in considerable debt to the mortgage company for any shortfall. Try as hard as you can to get that tenant out.

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    • #3
      thanks for that reply....i understand that ill be left outta pocket
      the query is the tenant though.....she says she staying put till council rehouse her.....will mortgage co just evict her and what will consequences be to me if the do......she refuses to pay rent even though she claims housing benefit...in my opinion she deserves all she gets but i understand its got to be legally done.

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      • #4
        Originally posted by jt3009 View Post
        thanks for that reply....i understand that ill be left outta pocket
        the query is the tenant though.....she says she staying put till council rehouse her.....will mortgage co just evict her and what will consequences be to me if the do......she refuses to pay rent even though she claims housing benefit...in my opinion she deserves all she gets but i understand its got to be legally done.
        If she is 2 months of rent arrears, you can get the LHA to pay the rent directly to you.
        You can serve her a Section 8 Notice (14 Days) and then take her to court and evict her, its not that complicated.

        She might want to stay till she gets re-housed and I want an 8 bedroom house with a pool for £200,000, but we don't always get what we want.

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        • #5
          Is Tenant in the middle of a 6 or 12 month AST, or has that passed and she's on rolling periodic tenancy?

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          • #6
            Originally posted by jt3009 View Post
            thanks for that reply....i understand that ill be left outta pocket
            the query is the tenant though.....she says she staying put till council rehouse her.....will mortgage co just evict her and what will consequences be to me if the do......she refuses to pay rent even though she claims housing benefit...in my opinion she deserves all she gets but i understand its got to be legally done.
            If you're surrendering possession to the mortgagee, why worry? Let the mortgagee worry about T's presence/status.
            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).

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            • #7
              Originally posted by jeffrey View Post
              If you're surrendering possession to the mortgagee, why worry? Let the mortgagee worry about T's presence/status.

              my only worry is if im leaving myself open to any legal situation from tenant...i.e can i be sued for breach of tenancy agreement....i issued a sec21 three days before her tenancy expired,that was two months ago ..the sec 21 date has no passed but she remains in place.

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              • #8
                Originally posted by unhappydisgustingWOW View Post
                Is Tenant in the middle of a 6 or 12 month AST, or has that passed and she's on rolling periodic tenancy?
                she was on a 6 month ast which has now passed....

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                • #9
                  Originally posted by jt3009 View Post
                  she was on a 6 month ast which has now passed....
                  So the mortgage company could/would probably issue her with two month's notice on the day they take over, or if she's still 2+ months non paying go the Section 8 route Sall mentioned which gives her 14 days.

                  I don't think there's any comeback on you. She can only sue you if you owe her money, or she's somehow suffered a financial loss due to your actions.

                  I think the only thing she could 'get' you on is if you haven't protected the deposit correctly.

                  Have you actually surrendered the mortgage already? No going back?

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                  • #10
                    Surrendering the mortgaged property back to the lender is a really bad thing to do.

                    The lender in possession will do one of two things:-

                    1. Sell the property with the tenant in situ - its worth about 50% of market value.

                    2. Recover possesion as mortgagee and then sell on the open market - all the costs of evicting the tenant will be added to your motgage debt. (note they wont do it on the S21 or S89 basis as the money isnt owned to them and the tenancy contract is not with them - they will do it under Ground 2. 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 Law 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;

                    In either case, if there is a shortfall, it will have to be paid by you as landlord and owner.

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