Updating post from Reddit.
Just wanted to see why anyone would let it get this far, like not even a polite note, sorry your probably gonna need to leave soon, lucky we have a AST till end of year but still.
Like why do some landlords feel it’s acceptable to mess with peoples housing like this, I have a family which I will now need to move after they’ve started local schools and made friends.
There should be laws to stop this.
It sounds like you dont understand the situation - as if they did this on purpose. You think you have problems with moving home in a few months?
The landlord is in real trouble if someone is repossessing a rental property; their equity (savings) they put in will be consumed by administration charges and legal costs. Given your tenancy, the property will be sold in a 30-day auction, so the little equity they have left will be lost, considering it's a distressed sale with occupants, no paperwork and not accessible for viewings.
If the distressed sale does not cover all costs, the lender will pursue their guarantee agreement in an attempt to force the sale of your landlord's home - where the above cycle can repeat. Infact, it may have already started the lender doesn't have to sell the rental before pursuing other assets.
This puts the landlord, seeking a rental property with CCJS and repossessions, in a difficult position; don't expect other landlords to overlook that when their application arrives.
However, they probably maxed out their credit cards, took out loans, and borrowed from family to reach this point, trying to keep plates spinning and likely facing bankruptcy.
You can’t be certain, but at this point in time, your net worth is probably greater than your landlord’s, and you’re in a better financial position.
>Lucky we have a AST till end of year
I would advise you to visit CAB with your Tenancy Agreement and other relevant documents. You will want to ensure your deposit was secured, and if not, take action now to get in the queue of debtors.
Plus, when a rental is repossessed, the Lender can use Section 8 to evict you sooner than the end date of your rental contract. They may not and it can depend on the content of your agreement, the landlord had to notify you that it was mortgaged.
The landlord certainly did not notify us it was mortgaged, not referenced anywhere in contract or other documents. Commercial landlord to add to it so they seemingly having a look at accounts have re-mortgaged their entire portfolio in the last couple of years and started to default
I'm not sure why you think the LL would have disclosed the financial arrangements of the property purchase.
It is often a condition of a Buy-to-Let mortgage, that you notify the tenant that you have a mortgage.
It is part of standard tenancy agreements (such as that from NRLA) that you tick a box to say if the property is mortgaged.
This is all to make it easier for the mortage lender to evict a tenant if they repossess the property.
No, no its not, it might be a vanishingly rare condition of some lenders.
Can you point to any mortgage product on the UK market currently where informing a tenant of the mortgage status is a requirement of that product?
Ta. #EDIASD 👍
LOL why on gods earth would any LL discuss their funding arrangements with you? I have to say if a tenant asked this question I would advise any LL to find another tenant.
Good luck finding a property to rent that does not have finance of some time secured against it.
Maybe they couldn't afford it? With the biting interest rates, landlords went into large mortgage arrears and rent sometimes don't cover.
Well they built the house as a part of a development and didn’t mortgage it until 5 years later so pretty sure they’ve just used it to rinse some money at this point
What? Do you have the faintest idea how bankruptcy works? If you want to launder money you DO NOT draw attention and scrutiny by creditors some of which will be huge banks. This is like the last or penultimate thing you'd want to do if you laundered money.
They mortgaged the properties to cover some other kind of business loss, expense, or investment. It didn't pay off and now they've gone bust.
I understand you're mad but what exactly do you want to happen here? The landlord has gone bankrupt which I highly doubt their staff or management wanted. They don't own your goddamn house anymore and are going to be in a lot of trouble with creditors as well as running a business again, and any personal liability for the directors. This is the bit that motivates companies to not fail and it's already in place, you can't legislate against going bust. The fact you have to find another rental nearby is honestly a rather tiny facet of the fiasco of a commercial landlord going under.
If the landlord is in receivership, it’s bankrupt.
The owner lost their investment, they are not allowed to communicate with tenants after that happens and there is no one working for company anymore.
It’s definitely not the choice or preference of landlord even if they are effectively responsible for the bankruptcy.
I expect we will be seeing this a lot in the near future when all the additional costs for new legislation come in.
If we had mortgages we would be selling before getting into this sort of mess.