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Question Title: Mortgage Default
| Question: 263 |
| We have a tenant on an assured shorthold lease commencing on 8th June 1995 who left the property on 13th September 1995, before the end of the six month period, and without giving the required notice. She received a letter from the mortgagee stating that the property was the subject of repossession proceedings. Although the owner denies this and states the first hearing is not until 3 October 1995. The tenant is therefore demanding her deposit (bond) back as she is claiming that she was forced to leave through insecurity. Whereas the owner is asking for the deposit in lieu of notice and rent due.
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| It is our opinion that the landlord would be well advised to return the deposit to the tenant without further delay as the tenant's claim is reasonable. Presumably the landlord has defaulted on the mortgage repayments. In these types of cases, a building society (the mortgagee) can often gain possession at quite short notice. The mortgagee would need to apply to start possession proceedings through the courts and it is not unusual for a forthwith possession order to be awarded. From the tenant's point of view, she can no longer claim to have ' quiet enjoyment' of the property with such a risk of eviction hanging over her. It is entirely understandable that she would want to move to alternative accommodation with more security. Landlords should take great care in such situations as a tenant could easily sue for damages and inconvenience. The landlord impliedly warrants property is available for 6 months when offering the tenancy originally. An evicted tenant could sue for breach of warranty on this basis. For this reason, it is important to check that landlords with mortgaged properties that permission to let has been obtained from the lender.
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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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Possession Issues