Q&As

Can a mortgagee rely on Ground 2 of Schedule 2 to the Housing Act 1988 to evict a residential tenant occupying under an assured shorthold tenancy if, at the time the tenant was given notice prior to the commencement of the tenancy that the property was mortgaged, it was mortgaged to a different lender (ie it has since been remortgaged)?

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Produced in partnership with Desmond Kilcoyne
Published on LexisPSL on 16/09/2020

The following Property Disputes Q&A produced in partnership with Desmond Kilcoyne provides comprehensive and up to date legal information covering:

  • Can a mortgagee rely on Ground 2 of Schedule 2 to the Housing Act 1988 to evict a residential tenant occupying under an assured shorthold tenancy if, at the time the tenant was given notice prior to the commencement of the tenancy that the property was mortgaged, it was mortgaged to a different lender (ie it has since been remortgaged)?

Can a mortgagee rely on Ground 2 of Schedule 2 to the Housing Act 1988 to evict a residential tenant occupying under an assured shorthold tenancy if, at the time the tenant was given notice prior to the commencement of the tenancy that the property was mortgaged, it was mortgaged to a different lender (ie it has since been remortgaged)?

The answer is, no.

Ground 2 of Schedule 2 Part I to the Housing Act 1988 (HA 1988) reads:

‘The dwelling-house is subject to a mortgage granted before the beginning of the tenancy and—

(a) the mortgagee is entitled to exercise a power of sale conferred on him by the mortgage or by section 101 of the Law of Property Act 1925; and

(b) the mortgagee requires possession of the dwelling-house for the purpose of disposing of it with vacant possession in exercise of that power; and

(c) either notice was given as mentioned in Ground 1 above or the court is satisfied that it is just and equitable to dispense with the requirement of notice;

and for the purposes of this ground “mortgage” includes a charge and “mortgagee” shall be construed accordingly.’

Ground 1 is the owner-occupation ground and the opening words state: ‘Not later than the beginning of the tenancy the landlord gave notice in

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