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Scumbag protection

by: The Insider
  • 10/05/2011
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Scumbag protection
They seek him here, they seek him there.. Our regular incognito columnist The Insider walks us through how it works for lenders when landlords stop paying the mortgage

One regular scenario we encounter on both buy-to-let and residential mortgages is the issue of tenants living in the property.

The tenant has been paying their rent diligently, but no payments have been made to the landlord’s mortgage account for months or even years on end.

When their mortgage finally enters my area and a Bailiff’s Appointment is requested, we’ll be contacted by a justifiably alarmed tenant asking what the hell is going on.

In the past, we generally wouldn’t be able to talk to the tenant because of Data Protection issues – it’s not their mortgage.

The tenant would have opened up the customer’s mail, because they were wondering why all these official looking court letters were being delivered there. There used to be no real protection for tenants in this situation.

We usually would give them 28 days to move out, but there was nothing in place to oblige mortgage lenders to do so.

The Protection of Tenants Act changed all that.

We now are legally obliged to give 56 days notice to move out of a property provided they can show us a valid Assured Shorthold Tenancy Agreement.

Another area which my company is now making full use of is appointing Receivers Of Rent.

If the tenants have been making all their payments and the landlord has been using their rent money to enjoy a champagne lifestyle and not bothering to pay his/her mortgage, why should the tenant suffer because of these scumbags?

If it’s financially viable, we can appoint a Receiver of Rent to act as the landlord, collect the rental income, pay the mortgage, contribute towards any arrears and be responsible for maintenance of the property.

A much healthier situation all round and much fairer.

The irresponsible landlord doesn’t lose the property and hopefully their account gets brought up to date, even if against their will.

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