Eviction due to landlord not paying the mortgage?

by Readers Question

8:22 AM, 24th August 2016
About 2 years ago

Eviction due to landlord not paying the mortgage?

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Eviction due to landlord not paying the mortgage?

I private rented with no letting agents, had a basic tenancy agreement and paid my rent each month. eviction

The landlord wasn’t paying his mortgage and now the house has been repossessed leaving my family homeless.

We got the letter informing us of eviction 6th July, this is when I refused to pay the rent for July. The landlord is now saying we owe him money, even though leaving my 2 young daughters (10 & 5) myself and my partner homeless!

I’ve heard we can claim back the rent we paid over the past 11 months, can anyone advise?

Thank you in advance

Natalie



Comments

Neil Patterson

8:32 AM, 24th August 2016
About 2 years ago

This is a very unfortunate situation for yourself and the owner of the property.

No one wants to lose their home and no landlord would want to be repossessed. Everyone's circumstances change and there are a lot of examples on this website of Banks calling in LPA receivers through circumstances beyond the owners control.

You cannot be evicted without the correct notice depending on your tenancy agreement. The risk with private renting is that at some point the property may no longer be available and I understand your frustration.

However not paying the rent will only harm yourself and land you in debt. You have lived in the property during this time so there is no chance the receivers will refund the past rent as they will be looking to make as small a loss for the lender as possible.

Charles King - Barrister-At-Law

12:05 PM, 24th August 2016
About 2 years ago

The cheek of it! He's giving landlords a bad name. Your ex- landlord will need to bring a county court claim against you for the lost rent. You would then have an excellent counterclaim against him which would, in all likelihood, completely eclipse the rent claim. Quite apart from any deposit protection issues, the landlord has breached the tenancy agreement whereby he agreed that you could occupy the property (the whole point of your contract with him) by bringing about the termination of your occupation by failing to pay his mortgage. You had a right to the quiet enjoyment of that property implied by law. There's no greater interference with your right to occupy than that. I hope you have been in touch with the homeless team of your council and made an application to them. Don't be fobbed off by their recommending 'Housing Options' to you. If you want to make a formal application to the council as a homeless person they have to consider your application within 56 days, and than have a right of review and appeal to the county court. They can put you in B&B accommodation, but only for a maximum of 6 weeks, whereafter they become liable to pay you compensation if they haven't housed you. If you are on a low income you can apply for Legal Aid, but you will need to find a local Legal Aid supplier (solicitor, Law Centre or Shelter). Incidentally, did you take advantage of the Mortgage Repossessions (Protection of Tenants) Act 2010 whereby you are entitled to a 2 month stay of eviction? Good luck Natalie, you have been very badly treated and I would not pay your landlord anything. He should be paying you.

Paul Green

12:10 PM, 24th August 2016
About 2 years ago

Sad but happens, frequently.if I were you I would not want to risk my credit score being affected because of someone else's misfortune . It may effect your next rental application or loans and mortgages in the future . Pay what's owed up to the very last day and ask the landlord for a glowing reference, then move on.... This is the best way forward to protect you and your family...good luck.

H B

12:53 PM, 24th August 2016
About 2 years ago

While you are still in the property you owe him rent.

But your landlord is also in breach of his contact with his mortgage lender and will be bringing your contact to an end prematurely.

Negotiate a deduction for moving costs and letting fees.

Charles King - Barrister-At-Law

13:43 PM, 24th August 2016
About 2 years ago

It will not affect your credit score. You do not owe him anything. You cannot get a Rent Repayment Order sadly.

S.E. Landlord

14:19 PM, 24th August 2016
About 2 years ago

Who is the rent due to as it appears the property has been repossessed and the eviction noticed issued by the mortgage lender or on their behalf.

Charles King - Barrister-At-Law

14:51 PM, 24th August 2016
About 2 years ago

Reply to the comment left by "S.E. Landlord" at "24/08/2016 - 14:19":

Good point S.E. I had assumed that the first Natalie knew about it was when the bailiffs arrived pursuant to the mortgagee possession order (which ordinarily would have entitled her to the statutory 2 month stay of eviction). But in fact many lenders (supposing it's a genuine BTL) would have appointed an LPA receiver as suggested by Neil and the rent would have been due to them. Curious.

Kate Mellor

11:17 AM, 25th August 2016
About 2 years ago

I am assuming that you are outside your fixed term period if you had a standard 6 month AST (you mention potentially claiming back 11 months rent). If so then as long as you've been given the correct two months notice to end your tenancy then it is irrelevant why you've been given notice.

The landlord could have been selling up, or not even given a reason. This is just the down-side of renting as opposed to buying. You have a limited security of tenure (assuming correct notice). On the upside you have flexibility to move at a months notice should you choose.

You agreed to these terms when you signed your tenancy agreement, so you have no grounds now not to pay your rent.

In addition if you are looking for a new rented property any credit referencing will check with your current landlord whether you have any arrears of rent and this could be likely to cost you the ability to find a new property.

All I can suggest is you seek advice from Shelter as to what the obligations for notice are following a repossession as these may differ from those required by a landlord and check that they have been correctly followed.

I would imagine if you haven't yet found a replacement property and you don't move out on the stipulated date that a court order would be required (check this). They would have to notify you of the court date and you may be able to attend and request more time to find a new home. The judge is likely to be much more sympathetic to your request if you've been paying your rent than if you haven't.

Speak to Shelter and check this with them as I don't have direct experience with evictions due to repossession.

Colin McNulty

10:40 AM, 27th August 2016
About 2 years ago

Charles King, your comments are interesting (though rather alarming!).

On what grounds do you believe that Natalie is justified withholding rent payments whilst she continues to live in the property, pending lawful eviction?

I'm working under the assumption that the property has has an LPA receiver appointed, and the "letter informing her of eviction" is a S21 notice.


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