Landlord not paying mortgage on property I am renting

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Hi Lenders Team, Lenders Solicitor

Following your previous email, I have now received my Notice to Quit (to formally end my current tenancy agreement) you have acknowledged myself as the tenant making my tenancy agreement "binding” I therefore expect Mortgage Trust Ltd to honour my tacit relocate agreement.

At the moment who should I be paying my rent to I am paid up to 31st May 2015 with the Letting Agent. Does this situation change?

The reason I am feeling aggrieved is I moved to this property with my 12 year old son as a long term let, decorated the full flat, replaced carpets, bath panel, bathroom and ensuite flooring spending in the region of £1000 as the landlord was not in the position to do it. Only after I had done all this work that I became aware of the landlords financial position and now being left out of pocket.

I look forward to hearing from you asap.

MilliesMadMother

Dear Madam

Thank you for your email of 5th June. The Notice to Quit has been served on you by the heritable creditor of the property under Ground 2 of the Housing Scotland Act, as detailed in the Notice. As such our clients, as heritable creditor, are not bound by the terms of the Tenancy Agreement between you and Mrs Landlord.

Any rental payments which you are due to make in terms of the Tenancy Agreement should continue to be made to the Letting Agents.

The Notice to Quit requires you to remove from the property prior to 26th July 2015. If you remain resident in the property after 26th July 2015 a court action will be raised against you in Sheriff Court with a view to obtaining a Decree of Ejection to enable our clients to eviction you from the property.

We would once again stress to you that we are unable to offer you any legal advice in connection with this matter and you should consult your own Solicitor or seek advice from CABG or similar advice agencies.

The Lenders Solicitor

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

MilliesMadMother

Your rental payment for the period 31st May – 30 June 2015 is now overdue. We would therefore be obliged to receive your settlement direct to our account by tomorrow, 5th June at the latest.

Letting Agent

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Dear Mortgage Trust,

See below my email which has been sent to your solicitor.

Further to receiving my 'Notice to Quit'

The mortgage holder is Mrs I don't give a shit, subsidised and in the sun...

I maybe interested in buying the property for a reasonable price in the future.

I look forward to hearing from you on the above matter.

MilliesMadMother

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Hi Lenders Team, Lenders Solicitor

Following your previous email, I have now received my Notice to Quit (to formally end my current tenancy agreement) you have acknowledged myself as the tenant making my tenancy agreement "binding” I therefore expect Mortgage Trust Ltd to honour my tacit relocate agreement.

At the moment who should I be paying my rent to I am paid up to 31st May 2015 with the Letting Agent. Does this situation change?

The reason I am feeling aggrieved is I moved to this property with my 12 year old son as a long term let, decorated the full flat, replaced carpets, bath panel, bathroom and ensuite flooring spending in the region of £1000 as the landlord was not in the position to do it. Only after I had done all this work that I became aware of the landlords financial position and now being left out of pocket.

I look forward to hearing from you asap.

MilliesMadMother

[PlanB]

Re: Landlord not paying mortgage on property I am renting

I hope this advice helps clarify things.

Shelter Scotland Case Advisor

I'm not sure that he has helped to clarify things

Let me read his response again (and again) to see if I can make some sense of it. It seems to say "Yes But No But".

However he does appear to say that the end of July is only going to be the beginning of things.

It must be hell living in limbo with no certainty of a home for you and your son or your shoe collection.

I'll be back soon.

Plan B x

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Tonight I am reading this email and its like double Dutch!

I am getting totally fed up of this selfish landlord not paying the mortgage.

I have not had a gas or electricity bill since I moved in November, good ole Scottish Power when I phoned them they couldn't find any record so I just left it so maybe I will just leave her with that!

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Hello MilliesMadMother,

Thanks for your query and sorry for the delay responding.

Rent – You need to contact the lender’s solicitor and clarify to whom and how they expect rent to be paid. You are still liable for the rent while you are there. It might still be the agent who collects the rent.

NTQ - This is a standard NTQ which you would expect to receive in this situation. It seems to me that the lender’s solicitor is clearly of the belief that the original tenancy agreement is not binding hence the termination date of the notice not coinciding with what would have been the termination date had the original contract been renewed (26/7/15 as opposed to 31/10/15).

As stated previously, it is very unlikely the agreement will be binding and they clearly don’t think it is.

Even in the event that they think it isn’t binding, they still need to give you ‘reasonable notice’.

You can again ask the lender if they consider that you hold a valid tenancy agreement i.e. one granted with their permission/consent and in keeping with the standard security granted in favour of the borrower (your landlord).

AT6 - The Landlord is citing Ground 2: mortgage default from the Housing (Scotland) Act 1988 as the reason for seeking possession of the property. For this ground, two months' notice of proceedings is required - which coincides with the two month’s notice to quit you have been given.

In order to use this ground, the tenant must have been given notice no later than the beginning of the tenancy that possession might be obtained on this ground. The sheriff may dispense with this requirement if they think it is reasonable to do so. In your case I think you were notified at clause 19.1.3.

This ground covers the situation where the landlord has defaulted on a loan secured against the property before the beginning of the tenancy and where the lender is entitled to sell the property to pay off the debt. Where this ground is proven it is a mandatory requirement for the Sheriff to grant possession.

Where a lender is successful in an action against a defaulting landlord only to find that an unauthorised tenancy exists, the lender has two options. They can raise an action to have the unlawful tenancy reduced (i.e. the purported contract is 'ripped up' by the courts); or it can raise an action for recovery of possession under this ground (which is what is happening here). In either case, a court order is still required before the tenant must vacate, which should buy some time for the tenant.

Court - The lender is still some way away from being able to evict you. They must wait till the 26th of July 2015 before enrolling a case in court which might then take some more weeks and then any eviction order would take likely a further four weeks (although this could be less) to execute.

It is still our advice that you should prepare for having to leave the property as it is not clear that you would have any prospects for successfully defending a court action raised by the lender.

If you remain at the property and you receive a court summons at some point after 26/7/15 a view could be taken then as to your prospects for defending the action - with reference to the ‘statement of claim’ and attached documents in the summons. We would underline that a successful defence is very unlikely.

Even were the tenancy binding the lender they would simply seek to end the tenancy on 31/10/15 in the normal way so you wouldn’t end up gaining much more time in the property.

You might consider proposing to the lender that you will leave on some specified date so they don’t have to go to the trouble and expense of raising a court action for your removal. You might then want to time any payments of rent so as not to be ‘out of pocket’.

I hope this advice helps clarify things.

Regards,

Shelter Scotland Case Advisor

[PlanB]

Re: Landlord not paying mortgage on property I am renting

Hi Shelter Scotland Case Advisor,

if the Mortgage Trust has issued me (MilliesMadMother) with a Notice to Quit (to formally end your current tenancy agreement) does this mean that they acknowledge that my tenancy agreement is “binding” on them or they wouldn’t have to do this? Does this mean they need to honour my tacit relocate agreement?

You've asked Shelter all the right questions so let's hope they come up with the answers you need today.

If (and I stress if ) your tenancy agreement is binding on the lender (tacit relocation) that doesn't mean that they can't seek possession before the six months is up on the grounds that the mortgage remains unpaid. It looks like this is their current intention.

But they'll have to play it by the book legally speaking which takes time. I'd like to think that after 26th July you could be given 8 weeks to leave which would take you up until end of September. I think a lot depends on what the Judge/Sheriff decides at the hearing and if you're allowed to attend. Or indeed if there even is a hearing and how soon.

The solicitor's letter refers to your possible right to Legal Aid to defend your position so maybe ask Shelter about that too.

You've done the right thing by making all and sundry aware that you are living in the property with your son. It was particular wise of you to write to tell the court that too.

It was helpful of the agent to offer you alternative accommodation but it's more expensive and would mean surrendering a sea view so you probably won't want to bite his hand off. He still has to deal with the issue of the money you invested upfront for the refurbishment.

Keep us posted.

Plan B x

[Undercover Elsa]

Re: Landlord not paying mortgage on property I am renting

I don't know where the year's gone so far MMM!

A lot of people seem to be away this week. Hope he gets back to you on Monday.
Let us know what he says, and try and enjoy your weekend

Elsa xx

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Got an out of office from Shelter Scotland Case Advisor he will be back in the office on Monday 1st JUNE.... Cannot believe we will be in the middle of the year!

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Hi Shelter Scotland Case Advisor,

Following my previous email.

I have just realised that is a Notice to Quit which is not the same thing as an Eviction Warrant.

Could you please advise specifically what is the meaning of Paragraph 2 of the solicitor’s letter.

Another point if the Mortgage Trust has issued me (MilliesMadMother) with a Notice to Quit (to formally end your current tenancy agreement) does this mean that they acknowledge that my tenancy agreement is “binding” on them or they wouldn’t have to do this? Does this mean they need to honour my tacit relocate agreement?

At the moment who should I be paying my rent to I am paid up to 31st May 2015 with the Letting Agent.

I look forward to hearing from you asap.

MilliesMadMother

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

Morning Shelter Scotland Case Advisor,

Yesterday I received my notice of eviction.

I have attached a copy.

I look forward to hearing from you.

MilliesMadMother

Today I got no reply from Shelter Scotland Case Advisor so if nothing in the morning I will email again by lunchtime with the points raised by PlanB and will update my thread tomorrow.

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

MilliesMadMother

We write to advise that following receipt of the Extract Decree in favour of Mortgage Trust Ltd that Morrisons , solicitors have now issued a formal Notice to Quit which will expire on 26 July 2015.
You mentioned in previous correspondence that you were considering going on holiday for three weeks in July. Have you decided and if so when do you return.

Alternative accommodation will now require to be sought and I wonder whether up the hill across the road from where you work would be of any interest. This property will be available in 2/3 weeks at a rental of £475 pcm. This is slightly more expensive than the Sea Shore but the Council Tax is only a band B.

I am unavailable tomorrow but you wish to email me or alternatively give me a call on Monday.

Big Boss
Letting Agent

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

MilliesMadMother, something else has occurred to me which you need to run past Shelter.

If the Mortgage Trust has issued you (by name) with a Notice to Quit (to formally end your current tenancy agreement) does this mean that they acknowledge that your tenancy agreement is “binding” on them or they wouldn’t have to do this?

Fingers crossed.

Post updates on your forum thread so I can monitor what’s going on.

PlanB xx

[milliesmadmoth]

Re: Landlord not paying mortgage on property I am renting

I've replied to your email

Plan B xx

Hello MilliesMadMother

That is a Notice to Quit which is not the same thing as an eviction warrant.

What it says is the Landlord (and it names the Mortgage Trust as your Landlord not the woman who didn’t pay the mortgage!) wants the property back on the 26th July. It says there’s nothing more they can lawfully do to you before that date.

After that date Mortgage Trust can apply to the court for possession but not before that date. It implies that this is not automatic – in other words if MT don’t want to seek possession they don’t have to. Please don’t see that last sentence as giving you false hope. I’m simply translating the pompous paperwork for you.

If possession is granted and you don’t move out voluntarily, then they would have to apply to the court for an eviction warrant before bailiffs can be sent round to your home. I would expect that you will have the opportunity to attend any possession hearing since it’ll be you named on the papers.

That’s how it works in English law and it seems that Scottish law is the same: http://scotland.shelter.org.uk/get_a...f_your_tenancy

Your contact at Shelter seems to be very good and well trained. Ask him specifically what is the meaning of Paragraph 2 of the solicitor’s letter.

Also ask them who to pay your rent to. I expect they’ll say the agent. At the moment you’ve painted the picture of an honest and reliable tenant. Let’s keep it that way.

What are the dates of your overseas trip? I wouldn’t want you to miss any significant letters/court papers while you’re away. It all depends on what if anything transpires over the next week or so, and whether anyone else gets in touch with you (the agent?). You have established a good line of communication with all involved which is wise.

Let me know what Shelter has to say

PlanB x