Are a tenant living in 'Buy to Let' property? If so you may become an innocent victim of the downturn in the housing market. What happens if your landlord fails to pay his mortgage? In 2008 approximately 4,000 buy to let properties were repossessed, around twice as many as the year before. The Council of Mortgage Lenders has warned that repossessions in the buy to let sector could rise to 9,000 in 2009.

The government, whilst addressing its concern at the implications of large numbers of families becoming homeless as a result of a landlord’s inability to maintain mortgage payments, has failed to provide assistance to tenants facing eviction.

If you are a tenant and the landlord's mortgage company has taken steps to repossess the property and a court order is made for possession, what action can you take and what are your rights?

Your landlord should have warned you that repossession is a possibility, although in practice few landlords do. If he has not done so, then you may not be aware that you are in danger of becoming homeless until the court sends a notice to the property advising that the mortgage company has been given a possession order and that the bailiffs will be coming to repossess.

A notice will be sent to the property addressed to the landlord and other occupiers telling you when the bailiffs will be coming. No separate court hearing will be held. You may only have a few days notice of eviction. Once the mortgage lender obtains possession, you will have no right to stay in the property even if the rent is paid up to date - you can still be evicted.

If you receive such a letter, you should contact us immediately because, depending on the particular circumstances, there are steps that we can take to help you.

Firstly, you may have the right to stay in the property if your tenancy is binding on the lender because you were already living in the property when the mortgage was taken out.

Secondly, mortgage lenders, once they have the possession order, may decide that the best course of action is to retain the property and appoint an agent to collect the rent - although this is at the lenders discretion. Many lenders however, would rather keep a tenant who is paying a regular, reasonable rent, rather than sell the property at a loss - which, in the current economic climate, is probable. However, decisions depend on the circumstances of each case. Some lenders, for example, the Halifax, will always try to work out a solution with the tenants.

Time is always of the essence in these matters so if you are unfortunate to find yourself in this position, you should contact us straight away so that we can see whether a solution can be negotiated with the mortgage lender. If you require any advice or assistance, please contact Lesley Wall at our Bristall office on 01924 472596.

Hellewell, Pasley & Brewer have two offices where any of their solicitors can help you. They offer a range of legal services including advice on housing matters. Your first half an hour appointment is FREE when you mention Community Times.

Dewsbury Office: 01924 455515
Birstall Office: 01924 472596