Landlord being evicted by bank?

[alwayspoor]

Ok, I don't know what to do here on top of all my other troubles, we were forced by previous rent arrears to take a private tennancy to get away from abuse by a local gang, we have been at this new address for almost 2 months now and on my doorstep drops an eviction notice to my landlord and all other occupiers?????

 

It appears my landlord is in arrears on his mortgage and now the bank wants the property back!

 

Does anyone know if there is anything we can do?

 

Thanks in Advance

alwayspoor

[MrShed]

I hate these questions - as I never know what to advise. It is slightly off my knowledge, but I am fairly positive(99%) that there is nothing you can do.

[alwayspoor]

Thanks for the reply, I guess it is just one of those situations where the only people who can really help are the landlords.

 

I have communicated with my LL through my Leasing Agent and I am assured that the LL is attempting a remortgage to clear the arrears.

 

I am somewhat suspicious of this reply but I guess all I can really do is sit and wait to see if that is the case I have been informed by someone at the coucil housing options that since this may be resolved they cannot do much until it is confirmed that I am definately going to be homeless.

 

Oh Well, Time to sit wait and chew my nails off.

[MrShed]

I think needless to say you need to look around for another property. Even if he resolves the issue this time, this is notice to yourself that the landlord may be having financial issues, and the issue could reoccur.

[alwayspoor]

Thanks I have thought about doing this but the availability of large properties is quite low (9 people in one house). Also how does this affect my lease I signed for 12 months. We felt very lucky at the time to have found this one, which used to be student housing.

[Nightmare4banks]

alwayspoor,

 

What is the exact wording of the notice that you have received?

 

The answer to this question may enable me to assist you further.

[alwayspoor]

The main wording of the notice reads as follows,

"The court has issued a warrant for the possession of the above property (land) at the request of the claimant. The warrant gives a county court baliff the authority to evict you and hand over possession to the claimant. This notice tells you the time and date when the eviction will take place, what will happen on that date, and what you can do.

The eviction will take place on XXXXXXX at 11:00AM

You should arrange to leave the property (land) with your belongings before this date and time."

 

Then it goes on to explain the "What will happen and contact numbers for the court and baliff etc".

 

Hope this helps.

alwayspoor

[Nightmare4banks]

alwayspoor,

 

Another question:

 

Is there any reference to "the Law of Property Act 1925" in this notice?

 

The answer to this question should hopefully enable me to assist you further.

[Aequitas]

Almost all mortgages to financial institutions have a provision that the owner must not let wthout the landlord's consent. If the landlord does let without the lender's consent the tenancy is not binding on the lender. However, as between the landlord and the tenant the tenancy is still "good" and you cannot therefore walk away from the property. Sit tight and wait for the lender to contact you. In any event, the lender will need a court order to get you out.

[Planner]

I would suggest you need to stop paying your rent immediatley.

[Joa]

I would query this suggestion; the tenancy is "live" therefore non-payment would consititute breach for which landlord can pursue, with added costs, minus good reference from the landlord which is a valuable asset, secondly non-payment can contribute to landlord's financial problem, meaning definitive rather the attempted action from the lender and less chances for the l/lord to clear the arears. Stopping rent payment would only be adviseable, IMHO, after the court order. Until then- pay the rent.

[MrShed]

Agree with Joa...

[patrickq1]

you can also write to the bank ofering to continue to pay your rent this will be in your favour to pay direct to the bank or mortgage company

[Joa]

but this only be OK if the OP had landlord's agreement.

[patrickq1]

but if they pay the landlord an he mis appropiates the funds to pay the mortgage .then the tennant will be in a predicament i know they have sitting tennents and its best to look at the site conserning the landlord and tennents acts i am sure you will find the right legalities on their concerning this sort of incedent as it is a common thing and it is also assuring to know that the banks cannot just chuck you out they would have to find alternative accom if that was the case they would be stepping into the landlords shoes ...hope that helps

[MrShed]

There is zero basis to pay the rent to the bank at this time. Also, I would be interested to see legal proof that the lender must find the tenant alternative accomodation - I am fairly positive this is not the case.

[patrickq1]

Shelter: Housing Act 2004

shelter would be worth looking on their i stand to be corrected mr shed i was always of the beleif that if the banks do take over the property they would have to act as landlord and could nt just chuck you out on the streets but i have put a link above and really who better than shelter good luck hope you get satisfied in your plight

[patrickq1]

more upto date for 2http://www.opsi.gov.uk/acts/acts1995/Ukpga_19950030_en_1.htm007

[Joa]

That's the issue; the bank has not taken over the property, as far as we know the landlord is negotiating with the bank, the process has only been initated- so no change of landlord, no end of the tenancy, no court order. Technically- business as usual.

[patrickq1]

Landlord and Tenant (Covenants) Act 1995 (c. 30)

sorry typo

[patrickq1]

ok thanks joa i have done a bit of research and pasted the sites to look at hope it helps

[MrShed]

Where do you live OP? The law may differ between England and Scotland. I have asked an (esteemed ) colleague, and he is positive that there is no protection afforded to the tenant in the UK. I see nothing in your links that would suggest otherwise patrick - perhaps you can highlight the exact areas you believe validates your point?

[Nightmare4banks]

I would just like to add here:

 

1.If alwayspoor has received a notice with reference to "The Law of Property Act 1925",this would allow the poster to remain in the property as a company takes over the day to day management i.e.collection of rent and issuing of certificates mainly gas safety of the property and charges the defaulting landlord accordingly.Once the fixed term expires,the company would see to sell the property with vacant possession and its main interest would be to clear the landlord indebtness.

 

2.In this case,it seems this landlord's contract does not fall in the category as outlined in point 1,so the only option would be to contact the court and to get enough time to find a suitable alternative property to live in.This would entail discussing this eventually with the appointed bailiff.

 

3.The mortgage company does not owe the tenants a duty of care however by the same token no tenant can be evicted without proper procedures being followed i.e. tenants being given ample time to find an alternative place to live in.In my view this could be up to 2 months.Again,it is essential to discuss the issues with the bailiff because when a bailiff has been instructed to visit the premises this means that the mortgage company and the mortgage payer have not reached an agreement to clear any arrears.This has nothing really to do with there being any tenants in the property or not.

 

4.Regarding the payment of any rent,this should also be discussed with the court/bailiff.Personally I feel that all payments should be made(taking into account any deposit that was paid at the start of tenancy which could have to be claimed back in this case under any of the new deposit schemes - I will not comment here as I am not sure myself regarding the specifics of alwayspoor 's deposit) until the agreed vacating date has been decided.

 

 

 

I have posted elsewhere too within the Landlord & Tenant section of this site regarding this sort of scenario so it may be a good idea to read through the posts and if there are any questions from anyone,please feel free to ask.

[Aequitas]

It is important to remember that the landlord remains the owner of the property whatever the bank does until the lender sells under its power of sale. (The only exception is foreclosure which is so rare that it can be discounted.) Rent should continue to be paid to the landlord unless the lender gives notice that it has appointed a receiver. What the landlord does with the rent is of no concern to the tenant.

 

Further, an order for possession must be made against the occupier.

 

Finally, it is worth checking if the tenancy predates the mortgage. If it does the tenancy has priority as a tenancy is a legal right which is "good against the world" - even someone who has no notice of it. The only exception would be if the tenant denied to the lender that he had a tenancy or agreed by deed to postpone his interest.

[alwayspoor]

Thank you for all the advice so far as to where I am i am in southern england if that helps.

 

Today was the court hearing for a stay of eviction which has resulted in a suspension of action pending a remorgage of the property. I am still yet to speak with my landlord personally however according to my LA they have decided to remorgage in joint instead of under a single name?

 

Still not 100% as to if this will go through but at least it is something for now.

 

Thanks

alwayspoor