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Question Title: Default on mortgage payments
| Question: 36 |
| Our client landlord has fallen into arrears on his mortgage payments for one of the properties that we manage, and the building society has started possession proceedings. The mortgagee (mortgage company) has now been granted an order for possession by the court and our tenants face eviction. What rights do the tenants have. Can the order be overturned ?
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| Answer: |
| Unfortunately, the tenants only have very limited powers in this process to prevent the possession order (e.g. they may in certain circumstances be able to delay the execution of the warrant for eviction). In practice, the only way is for the landlord to come to an arrangement with the mortgage company (normally by paying off the arrears), or sign over the rental income so that it is paid directly to the mortgagee until the owner's financial circumstances improve. However, the tenants do have certain rights in this situation. The landlord originally granted them a tenancy on the basis that they may peaceably enjoy possession of the property. By defaulting on his repayments and allowing the property to become repossessed, the landlord has not kept his side of the bargain and the tenants could sue for breach of contract and claim damages for 'loss of quiet enjoyment'. Whether the landlord has sufficient assets or other means to be able to enforce any successful damages claim, and thus justify bringing the claim in the first place will depend on the individual circumstances.
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References:
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Pages:
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Hyperlinks:
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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