Statutory Protection against mortgage repossession for residential tenants
Statutory Protection against mortgage repossession for residential tenants

The following Property Disputes practice note provides comprehensive and up to date legal information covering:

  • Statutory Protection against mortgage repossession for residential tenants
  • Tenancies granted without mortgagee's consent
  • Power of court to postpone giving of possession
  • Dwelling
  • Circumstances of the tenant
  • Notice of possession order
  • Guidance released on 1 October 2010

The Mortgage Repossessions (Protection of Tenants etc) Act 2010 (MR(PT)A 2010) applies where a landlord of a mortgaged property grants a residential tenancy without obtaining the lender's consent. It intervenes where the landlord defaults and the lender obtains a possession order, and obliges the lender to serve a notice on the tenant advising them of their rights under MR(PT)A 2010. A tenant can request the lender to delay enforcing the possession order so they can find alternative accommodation and avoid homelessness. If the lender refuses, the tenant can apply to court to ask it to order a delay. Tenants may still be vulnerable as a lender does not always require a court order to obtain possession and so the tenant may not have the chance to claim relief.

Tenancies granted without mortgagee's consent

Historically, tenants have had few rights if their landlord defaults on mortgage repayments. Tenancies granted after the mortgage date and without the lender’s consent offered no rights of occupation or protection against the lender. Consequently, the tenant could face eviction. Tenant protection afforded by section 98 of the Rent Act 1977 (RA 1977) is subject to a two-stage test. It applies solely to protected and statutory tenancies, which are being phased out as no new protected tenancies can be created after the Housing Act 1988 (HA 1988). RA 1977, s 98 protection is

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