My landlord's property is being repossessed: what are my rights?

If your landlord has a mortgage on the property you rent and they fall behind on their mortgage payments, the mortgage lender may begin repossession proceedings. This can put your tenancy at serious risk, but you have rights, and acting quickly is important. Here is what happens to your tenancy and what you can do.

What happens when a landlord's property is repossessed?

When a court grants a possession order in favour of the mortgage lender and the property is repossessed, what happens to your tenancy depends on several factors, most importantly, whether your tenancy was created before or after the mortgage, and whether the lender agreed to your tenancy.

Authorised tenancies: If the lender knew about and agreed to your tenancy, or if the mortgage pre-dates your tenancy and the lender consented to letting, your tenancy may be binding on the lender. This means the lender takes the property subject to your tenancy.

Unauthorised tenancies: If the landlord let the property without the lender's consent (which many buy-to-let mortgages require), your tenancy may not be binding on the lender. In this situation, the lender can potentially apply to court to remove you from the property even without a possession order against you.

The Mortgage Repossession (Protection of Tenants etc) Act 2010

The 2010 Act gives tenants some protection when a lender is seeking repossession. It requires lenders to give notice to occupiers and gives the court the power to postpone the date on which a possession order takes effect, by up to two months, to allow tenants time to find alternative accommodation. The court can also require the lender to give proper notice to any tenant before taking possession.

What notice must you receive?

Lenders must serve notice on occupiers of a property before enforcing a repossession order. The court will not issue a warrant of possession until the lender has confirmed that notice has been served on anyone who might be living in the property. If you have not been given notice, tell the court.

What to do if you find out about repossession proceedings

1. Do not ignore any court papers: If you receive anything relating to court proceedings for possession of the property, read it carefully. You may have the right to attend the hearing and make representations.

2. Contact the court: Write to or attend the court handling the repossession proceedings. Ask to be joined to the proceedings as an affected party, or at minimum to make representations about the postponement of any possession date.

3. Seek housing advice urgently: Contact a housing adviser, law centre, or Citizens Advice immediately. The Mortgage Repossession Helpline (0300 300 0516) provides free advice in this situation.

4. Approach the council as potentially homeless: If you are at risk of losing your home, approach your local council as homeless or at risk of homelessness. The council has a prevention duty and must take reasonable steps to prevent your homelessness.

5. Do not leave voluntarily before the possession date: Leaving before the court-ordered date removes your rights. You are entitled to remain until the possession order takes effect.

What if you have paid rent in advance?

If you paid rent in advance to a landlord who then failed to pass it on to the mortgage lender, and the property is repossessed, you may lose those advance payments. You could claim the money back from the landlord, though recovering it may be difficult if they have no assets.

Disrepair and mortgage repossession

A mortgage repossession does not extinguish a disrepair claim you may have against the landlord for the period during which you lived in the property. You can still pursue compensation for disrepair that occurred during your tenancy, even if the property is subsequently repossessed.

See our guide: /help-centre/can-i-claim-housing-disrepair-after-i-have-moved-out.

When should I contact Support for Tenants?

If your rented home has disrepair that your landlord has not fixed, and you are now also facing the threat of repossession, call us on 0800 030 4669. We can advise on the disrepair element of your situation.

No upfront cost. You only pay if you win, and the fee comes out of the compensation. If you don't win, you pay nothing.

Sources

• Mortgage Repossessions (Protection of Tenants etc.) Act 2010 (legislation.gov.uk)

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• Can I claim disrepair after I have moved out?
• Homeless or being evicted, what to do
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