Landlord not paying mortgage on property I am renting

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Hi MilliesMadMother,

It’s up to you what you do – I can’t advise you one way or the other.

Technically you are liable for the rent as per your contract until it is , for example, voided by the court. It is probably the case that the rent should still be paid to the borrower not the lender at this point.

I think the key thing for you is not to leave the property ‘out of pocket’ in terms of your rent and deposit if you can avoid it. The considerations around your ‘investment’ in the property are something I can’t really comment upon and don’t form part of your contractual or deposit arrangements.

If you want to wait for the lender’s response until you make you next move/release any more rent then be clear to the agent you are doing this and why.

As I’ve said before – starting planning for worst case scenario and assessing your options.

Regards,

Case Worker, Shelter Scotland

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Good morning again, MilliesMadMother,

We refer to our earlier email and can now confirm that a decree was issued last week in favour of Mortgage Trust.
Lenders Solicitor have now confirmed that no action is likely to be taken for at least another 4 weeks at which time a Notice to Quit will be served.
This in effect means that the earliest that you will require to vacate the property will now be early August.

Big Boss, Letting Agent

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Hi MilliesMadMother

I think our advice is the same as earlier.

You are liable to pay for your occupation of the property but may be able to agree with the lender arrangements for your leaving without the need for court action and so you don’t lose out financially.

Regards,

Case Worker, Shelter Scotland

[PlanB]

Re: Landlord not paying mortgage on property I am renting

Millie.

I've read your emails and replied to you by text.

My instant reaction is why pay rent to someone who no longer owns the property?

My next reaction is what can they (repossessed Landlord) do to you if you don't pay them rent?

Give me a day or two to look into this further.

Plan B x

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Hi Lenders Solicitor

Further to your email below.

Following the case calling in Sheriff Court on Wednesday 22nd April, could you please advise where I stand as a tenant and where I am required to pay my rent to.

I look forward to hearing from you asap.

MilliesMadMother

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Dear Madam

We can confirm that the Sheriff granted Decree in favour of our clients at the hearing on 22nd April. We are now awaiting receipt of the documentation from the court to allow our clients to proceed with action. We anticipate being in receipt of same in approximately 3 to 4 weeks. We shall then review the account with our clients and obtain their instructions on how they wish to proceed then.

As advised in our email of 16th April if we are instructed to seek possession of the property we will firstly issue you with Notice to Quit which will give you a two month period in which to vacate the property. As also previously advised, we can offer you no legal advice in this matter and you should consult your own Solicitor or seek advice from CAB or similar advice agencies.

As matters stand just now your rent should continue to be paid to your landlord in terms of your Tenancy Agreement.

Lenders Solicitor

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Millie.

I've read your emails and replied to you by text.

My instant reaction is why pay rent to someone who no longer owns the property?

My next reaction is what can they (repossessed Landlord) do to you if you don't pay them rent?

Give me a day or two to look into this further.

Plan B x

Thanks for that PlanB got your msg but was just updating the thread so if you ever need to refer to it in the future its all there!

[PlanB]

Re: Landlord not paying mortgage on property I am renting

your rent should continue to be paid to your landlord in terms of your Tenancy Agreement.

Lenders Solicitor

Says who?

[cymruambyth]

Re: Landlord not paying mortgage on property I am renting

This doesn't make sense to me! If the landlady has lost the property then she won't be paying the lender; surely if you pay the agent he will be handing money to the landlady and the lender will be losing out.

[PlanB]

Re: Landlord not paying mortgage on property I am renting

The Shelter Man seemed convinced that your tenancy agreement isn't binding on the Lender. I think this point needs closer examination because in English Law (I need to check Scottish law) the tenancy agreement is binding on the Lender if it was granted with the Lender's consent. Since this is a Buy-to-Let mortgage the tenancy agreement was obviously granted with the Lender's consent.

I have a mortgage with the Mortgage Trust. It clearly states in my Ts & Cs that I cannot let the property for more than six months at a time. When I queried this I was told it was because the MT couldn't evict a Tenant during the lifespan of an AST following repossession hence there is a time limit imposed. I don't know whether your ex-Landlady's mortgage Ts & Cs say the same but it's worth checking this out.

More research is needed before you throw in the towel.

Google produced this snippet:


The lender agrees to the tenancy

Most mortgage agreements contain provisions requiring the borrower to obtain the lender’s written consent before granting a tenancy. Often, specific consent to each individual tenancy is needed, even in buy-to-let mortgages. Therefore, it is important for a borrower to read the mortgage terms and conditions before granting a tenancy. If a tenancy has not been granted in breach of the mortgage terms it will be binding on the lender, i.e. the lender will not be able to seek possession against the tenant in these circumstances by bringing possession proceedings against the borrower.

Plan B x

[PlanB]

Re: Landlord not paying mortgage on property I am renting

We shall then review the account with our clients and obtain their instructions on how they wish to proceed then.

As advised in our email of 16th April if we are instructed to seek possession of the property we will . . .

Lenders Solicitor

I spy the *if* word again

They have also acknowledged that it's not their decision as to what happens next it's the Lender's decision. They'll just do as they are told (or "instructed" as they like to call it).

Plan B x

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

I spy the *if* word again

They have also acknowledged that it's not their decision as to what happens next it's the Lender's decision. They'll just do as they are told (or "instructed" as they like to call it).

Plan B x

Thanks for this PlanB

I have exhausted my brain with all this now, so who do I write to now to get this information clarified?

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

This doesn't make sense to me! If the landlady has lost the property then she won't be paying the lender; surely if you pay the agent he will be handing money to the landlady and the lender will be losing out.

Cym when I saw that in writing I was thinking the same plus it's x 4 properties....

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

I spy the *if* word again

They have also acknowledged that it's not their decision as to what happens next it's the Lender's decision. They'll just do as they are told (or "instructed" as they like to call it).

Plan B x

Morning PlanB

What do you think I should do now?

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Good morning again, MilliesMadMother,

We refer to our earlier email and can now confirm that a decree was issued last week in favour of Mortgage Trust.
Lenders Solicitor have now confirmed that no action is likely to be taken for at least another 4 weeks at which time a Notice to Quit will be served.
This in effect means that the earliest that you will require to vacate the property will now be early August.

Big Boss, Letting Agent

MilliesMadMother

We would you please advise when we may expect payment of your outstanding rent?

Letting Agent