Landlord Financial Troubles - Notice of Possession Proceedings

[Ziki]

Hi,

We have recently started a new AST, and we have just received a letter addressed to the tenants advising us of 'Notice of Possession Proceedings' on the flat we have just rented. The claimant is GE Money, and the defendant is our landlord. The letter also contains the date/time of a possession hearing.

I have called the agent and they assure me that there is nothing to worry about, but I'm not sure. I've tried googling around to try to figure out what is going on, but can;t really find anything that I understand. Most hits are discussing landlords giving notice to tenants, whereas this is some financial company that the landlord has relations with.

When we signed the contracts, we were asked to sign a section 2 form that notified us that the propertly was under mortgage to Northern Rock, and Northern Rock were also named on out contract. I'm a bit confussed as the notice we received mentions GE Money.

I have tried calling GE Money, but they won;t speak to us about it.

Please could somebody advise whether they think there is anything to worry about and whether there is anythig that I should be doing? I'm worried that somebody is just going to turn up one day and tell me the flat no longer belongs to the landlord and that we need to move out imediately

Any advice gratefully received.

Thanks. :-)

[Ziki]

When we signed the contracts, we were asked to sign a section 2 form that notified us that the propertly was under mortgage to Northern Rock, and Northern Rock were also named on out contract.

Apologies, I just noticed I made a mistake. It was a 'Ground 2' form, rather than a 'Section 2' form.

[Ziki]

Sorry for drip feeding this... I just noticed that the claimant on the Notice of Possession form is 'GE Money Secured Loans Limited', so I guess that the landlord has taken a mortgage out through Northern Rock, and then a secured loan with GE Money.

I guess I'll write to GE Money and to the court to notify them both that we are tenants of the property. Not sure what else to do really

[P.Pilcher]

I trust you have also passed this correspondence onto your landlord. Your letter to his creditors should include copies of your AST to prove who you say you are - I am sure you are doing this anyway. All you can do then is to wait and see what happens, continuing to pay your rent as usual. If you are lucky the finance company or the court may accept you as a tenant and instruct you to change the payee for your rent, but they will probably only honour your existing AST as far as it's fixed term. They may not and are able to give you notice to vacate during the fixed term. If this happens, you are in a position to sue your landlord for breach of contract, but in any case, it would be advisable to start looking for somewhere to move to.

P.P.

[Ziki]

Yes - have forwarded a copy of the letter to the landlord at the address on my contract.

Good advice about including the AST. I'll definitely include it in the letter.

As far as I know, the mortgage holder knows that I am a tenant. Northern Rock (the lender) are actually named on my contract and the ground 2 form.

I’m hoping that the secured loan company making the claim can’t take possession and evict me directly, but rather, if their claim is successful, the mortgage lender will have take possession and sell.

Does this sound correct, or could the secured loan company force me out? If the mortgage lender does take possession, can given they know I live there and they are named on my contract, would they still have to honour the terms of the contract (ie, 6 month min term + 2 month notice)?

Many thanks

[Springfields]

From dealing with this in the past it depends on the company and also the amount of debt that is owed against the property.

It doesn't automatically mean that the company will be given possession of the property however if it is a sizable amount then its more likely. Especially if the LL has done nothing to try and improve his position.

Its you will be given further notice if they plan to evict, but you are doing the right thing in making them aware you exist.

Another alternative they may have is to take possession of the property and hand it to a third party management group for the remainder of your tenancy, for shorter tenancies is easier than forcing you to leave. In which case the only difference will be that the Landlord changes for you but you wont have the security of a longer let.

[Ziki]

Hi,

Sorry - have been away for a few days. Thanks for the advice. I sent explanatory letters to the court, claimant (secured loan company), and their solicitors, and I also included copies of the tennancy agreement and the ground 2 form that explains (to me), that the flat is under mortgage.

Court date is mid December. Hope it's not a spoilt Christmas O_o

Sit back and wait time.

Thanks again for the advice

[davidjohnbutton]

As your court date is mid december - the judge will give you a minimum 14 days and if it happens to come under the new legislation he could give you two months I believe under http://www.opsi.gov.uk/acts/acts2010..._20100019_en_1 but this applies only to unauthorised by mortgagee lets. (dont assume landlord had permission just because you were given a g2 notice)

Over the Xmas period, 2 weeks before and 2 weeks after, most courts operate a sort of amnesty against eviction, so 14 days will take you up to Xmas and the earliest you could be evicted would be about 2nd week in January assuming the bailiff warrant is applied for and the bailiffs have nil caseload.

You need to be at court or legally represented on the day - dont just hope for the best - the judge can delay possession up to 42 days in ordinary circumstances and if you go and explain your situation, though eviction is inevitable, it will at least delay it.

BTW, in your shoes, I would not pay any more rent at all and if approached say you have a potential counterclaim for breach of contract by the landlord equal to or exceeding his claim to rent.

Start looking for somewhere now.