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Question Title: Possession by mortgagee
| Question: 240 |
| A tenant of one of our properties has received a copy of a summons for possession of that property. The landlord is in default with the mortgage. He has a twelve month assured shorthold contract. What should the tenant do ?
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| Answer: |
| Unless the mortgage company has agreed to the let, they have an absolute right to possession of the property from a landlord (and tenant) who is in default with the mortgage and are not legally obliged to honour the tenancy in any way unless: 1) the tenancy was created prior to the date of the mortgage, or ii) the lender has expressly or impliedly recognised the tenancy In the case of an assured shorthold tenancy, it may be possible to delay eviction until the end of the agreement. An application can be made to the court for the mortgage company to suspend the warrant for possession in order to allow the tenant time to find alternative accommodation or until the end of the current tenancy agreement. The tenant can also request that the mortgage company allow them to remain in occupation as tenant of the mortgage company until the property is sold. If it appears to the court that the mortgagor is likely to be able within a reasonable period to pay any sums due under the mortgage, then the court may, at its discretion adjourn, stay or suspend the judgement, thus removing the need to evict the tenant in residence. If a tenant cannot delay possession and is evicted before the end of the term of their tenancy they can sue the landlord for compensation for breach of contract and any consequential expenses such as removal costs, reconnection charges and general damages for distress and inconvenience.
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
Jul 2001 page 25 |
letting-update-journal.html
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Letting Handbook |
Chapter 12 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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