Private tenants to receive greater protection when landlords are repossessed.
The government is planning to close a gap in the law that until now has potentially allowed tenants to be repossessed with little notice. In the past two years buy-to let repossessions have increased sharply. Many of the countries most concentrated buy-to-let hot spots, such as city centres have experienced the biggest house price falls. Council of Mortgage Lenders figures show 1,700 buy-to-let properties were repossessed by lenders in the first three months of this year.
Many landlords investing in such areas initially invested little cash to buy houses. Large falls in house prices have left them well into the negative equity territory. This has left inexperienced landlords to ask the question “how do I sell my house fast?”. Unfortunately investors looking to cash buy houses will typically offer below current market value, meaning that the cash shortfall is simply not an option.
Some landlords have found that their mortgages are higher than their rental incomes and they do not have the cash to consistently make the shortfall each month. In this situation an individuals can fall quickly in to mortgage arrears. If the mortgage company goes to court the landlord may even choose not to stop the repossession process. There have been cases where tenants did not about a landlord’s situation until the court bailiff knocked on the door.
Since April 2009, lenders are required to send a letter to the property addressed to 'the occupiers', informing people living at the property of the date of court hearing. They have to do this within five days of the hearing date being confirmed by the court. Shelter, Citizens Advice, Crisis and the Chartered Institute of Housing approached the government to ask that more is done to ensure that tenants receive this notice.
The four charities are also campaigning to stop repossession of properties without the court giving any consideration of the tenant’s personal position, especially when venerable people and children are involved believe that these measures are still not enough.
Last month Margret Beckett said "It is not right that tenants through no fault of their own can be forced to leave their home at a moment's notice if their landlord is repossessed, which is why we are intending to change the law. In the meantime, I hope that lenders will move as quickly as possible to safeguard tenants in their homes."
This is welcome news to those who believe that the rights of tenants must be the same as those of owner occupiers.
Sell my house Quick?
If you are a landlord currently struggling to sell your property and need to sell urgently to stop house repossession or for any other reason then here at Rapid Home Solutions we can help. If you need to sell your home fast then we can cash buy your house within 4 weeks. We will always consider buying houses with tenants currently in occupation
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