Buy-to-Let Landlords struggle to keep up mortgage repayments | Debt Help

Tenants evicted when Buy-to-Let Landlords have property repossessed by the courts

As this recession tightens its grip on our economy many buy-to-let landlords have found themselves unable to sustain their mortgage commitments to repay their borrowings. The chief executive of the housing charity Shelter says that he is worried about the increase in the number of people seeking advice from his organisation.  Many landlords and tenants are hunting around for advice and help from money saving experts as they try and deal with their situations.

Thousands of private tenants are finding themselves being evicted by Mortgage lenders due to the fact that landlords are struggling to keep up their mortgage repayments as they try and get out of debt.  The tenants are not at fault in these situations as many have paid their rent and their utility bills on time. They have become another casualty of this worsening recession.

The first a tenant would know about their home being repossessed by the courts on behalf of the mortgage lender is when they receive a letter addressed to the occupier of the property from the court. The letter will inform them that their home is about to be repossessed and they are about to become homeless. When a notice of eviction is received by the tenant they discover that they have up to fourteen days to leave the property. This only happens if the tenant intercepts the letter from the court in the first place.

If you are a tenant then here is some mortgage advice that you may wish to follow:-

1. When a new landlord carries out a financial check on you as a tenant it would be prudent for you ask him or her if you could see their latest Experian credit report in order to see if they have missed any mortgage payments recently. This is after all what the landlord is doing when they check your credit report.
2. Be sure to check that the landlord uses a secure deposit scheme to look after your deposit. If they do not use the services of a secure deposit scheme you could lose your deposit if the home is repossessed.
3. It is important that you look out for all the post addressed to the occupier and that you read it as soon as it arrives. This is your main defence when it comes to knowing what is happening.
4. Should you find yourself facing eviction you will need to speak to Citizens Advice Bureau, Shelter, your local council or the housing advisory centre for advice and information?
5. Ask the courts to add your name to the proceedings so you can receive information about the case.
6. Do not move out of the house until you have read your contract. You may find that if you move out before being evicted you could be breaking your notice period as set in the contract. The detail is always in the writing!

From next month, it is believed that tenants will receive the maximum possible notice of the repossession proceedings.  Instead of the current fortnights notice received at present. This should provide them with more time to make alternative arrangements. The government is also working closely with the mortgage lenders to establish a clear procedure to ensure that tenants are treated fairly.

Your thoughts, experiences and comments are welcome. You can join the discussion below and leave your thoughts and experiences.

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