Your rights where repossession is a risk
When they read the letter addressed to ‘The Occupiers’ Eabha and Clemmy were shocked. The letter said that their home is being repossessed by the bank because of non-payment. Eabha and Clemmy have paid their rent in full, on time, every month. But the property owner has not been making her mortgage payments.
‘She’s had this house for about 15 years so it’s not as if she can’t afford it’ Eabha said. ‘And she rents out at least three other places, too.’
We can only speculate as to why this landlord has defaulted on her mortgage. But at least she actually has a buy-to-let mortgage. That means that Eabha and Clemmy have a ‘binding tenancy’. They have the right to stay in their home until the end of the fixed term. If their home is repossessed before then, the bank becomes the new landlord.
Some landlords don’t have ‘consent to let’ at all and rent out in breach of their mortgage conditions. If the owner hasn’t secured consent from their mortgage lender, you are ‘an unauthorised tenant’. If your home is repossessed by the mortgage lender, as an unauthorised tenant, your tenancy may not be binding on the lender.
Hopefully, it will never happen to you but should you find yourself in this position, please contact Shelter London Advice Centre for help. If you’re aged 25 or over, the number to call is 0344 515 1540. If you’re aged under 25, call 0330 053 6091.
References
Two months ago, Sipho was served with notice under section 21 of the Housing Act 1988. He planned simply to move out by the date mentioned. But despite his best efforts, Sipho has not yet been able to find a new home.
Now, Sipho fears that the property owner/landlord will apply to the court for a possession order. Sipho is worried that securing a new tenancy will be even harder if the landlord mentions his eviction in a reference.
Section 21 is also understood as a “no fault” process. There should be no disadvantage in having been served with notice this way, then. But Sipho is more concerned that others might not rent to him if he doesn’t leave now. It’s possible. Still, in law, Sipho is perfectly entitled to stay in his home until the date established through a court possession order, though.
Moreover, landlords are under no obligation to provide references. Some landlords refuse to write references, under any circumstances. You have no particular right to a reference from a landlord.
Referencing checks are mostly about proof of identification and residence (so called ‘right to rent’), proof of income and credit-checking. With that in mind, it’s worth being ready to offer a landlord/their agent a reference from your employer or, if you have a business bank account, your account manager instead.
Renters’ Rights London urged Sipho to contact the property owner, to explain his situation and ask for more time. The owner/landlord has six months from the date when the section 21 notice was served to apply to the court for possession. That’s still four months in the future.
It must be worth asking this landlord to wait for, say, six or eight weeks before she moves the process forward. Hopefully, the landlord will agree and Sipho will be able to find a new home within that time.
Enchanted Lands
Last year, a giant, a witch, was summoned to help a family facing eviction. A huge figure, created to make a stand in support of the occupation rights of people pushed and shifted. Today, the law of the land condemns those of us who cannot claim ownership rights, to remove at the behest of others. But “laws are there for the changing”.
Click on the image, below, to listen (30 mins)