What happens to a tenant of over 10 years if the landlord loses home to the bank?

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Velo_eire

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Hi,

Ive been scouring the internet for the past few hours trying to find an answer to my issue but I can’t seem to find anything close to my particular case. I’d appreciate any help from here.

Im a tenant renting from a private landlord and have lived in the home for over 10 years now.

I have reasons to believe that my landlord is in mortgage arrears, and hasn’t paid for quite a while now. If that is true, do I have any rights in the event that he loses the house and it gets taken by the bank or any other third party?

From my research there is a possibility that the bank could appoint a receiver and I would have to pay the rent to them, but that is not the only option. I’m worried because it seems that if the bank decides to sell the property, they can just immediately evict me with just a few weeks notice, where right now given that I’ve lived here for a long time I should be entitled to about 9 months time of notice.

I am not in a great financial situation right now, and wouldn’t be able to afford to move into a new place for at least 2 more months (starting a well paying job in September). Currently barely getting by with the rent as is. This is really stressing me out and I’m trying to calm myself down by finding some assurance online.

I have little knowledge when it comes to the law in this regard and would greatly appreciate any help or advice.

Thanks
 
These things move very very slowly, I wouldn't be concerned in your situation. If I were you I'd be making plans to move once established in your new job.
 
EO2020 said:
These things move very very slowly, I wouldn't be concerned in your situation. If I were you I'd be making plans to move once established in your new job.
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Thanks for the reply.

See I’m concerned because yesterday I received a registered letter addressed to my landlord to my address. This was very unusual, so I just inspected the outside of it and could make out a “Notice to Proceed” which after googling seems to be something sent out once the court is involved.

Ive contacted my landlord to come and collect it.

Im worried that this could have already potentially been in the works for some time.
 
You would be entitled to 224 days notice if either your landlord or a Receiver wished to sell the property with vacant possession.

There is always a possibility that the landlord or the Receiver could sell the property with you as a sitting tenant.

Jim Stafford
 
Jim Stafford said:
You would be entitled to 224 days notice if either your landlord or a Receiver wished to sell the property with vacant possession.

There is always a possibility that the landlord or the Receiver could sell the property with you as a sitting tenant.

Jim Stafford
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Thank you,

“Receiver“ includes banks and not just individuals, correct? They don’t have some special circumstances where they can just bypass the notice?

And in the event that they sell as a sitting tenant, are the new owners still bound to the RPZ rent increase limit of 4% per year?
 
Leo said:
Yes, but note it's 4% per annum since the last rent review.
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Oh I see, considering I haven’t had my rent changed in close to 10 years, that would mean it’s be eligible for a 40% increase?

I do plan to move out as soon as possible at this point, I’m just worried I’ll be pushed out before I’ve saved enough.
 
It would be 4% compounded over 10 years, so ~48%, you can use the RTB calculator here to work out the maximum allowable.

You would also be entitled to a length notice period before any review could take effect, see here for more.
 
Leo said:
It would be 4% compounded over 10 years, so ~48%, you can use the RTB calculator here to work out the maximum allowable.

You would also be entitled to a length notice period before any review could take effect, see here for more.
Click to expand...

Thanks for the help, seems like no matter what I should be okay for at least a few months given the worse case scenario, which would be enough time to save up and move out.

Cheers everyone.
 
If a receiver/ agent is appointed, they will send their property managers to inspect the property. Once they establish it is occupied they will write to the occupant providing their details and request your tenancy agreement and request you pay rent directly to them. I would comply, they are now your new landlords as by the time a receiver is appointed the bank has taken possession either by court order, or voluntary surrender etc. Depending on their powers of appointment they can sell the property but if you are a recognised tenant of more than 10 years you have 224 days notice . The receivers have a responsibility to you as a tenant to protect your rights and provide a safe clean home. You can contact them to fix whatever is broken or if there is damp or no running water etc etc. They can sell with tenant is situ or with vacant possession it depends on what strategy their property managers advise in order to get the best price for the bank to help clear the borrowers debt. The issue you may have is if the borrower , your landlord at present is non co operative and harasses you to continue to pay rent to them, this can cause a lot of anguish for tenants being stuck in the middle of such disputes.
 
1 step forward said:
If a receiver/ agent is appointed, they will send their property managers to inspect the property. Once they establish it is occupied they will write to the occupant providing their details and request your tenancy agreement and request you pay rent directly to them. I would comply, they are now your new landlords as by the time a receiver is appointed the bank has taken possession either by court order, or voluntary surrender etc. Depending on their powers of appointment they can sell the property but if you are a recognised tenant of more than 10 years you have 224 days notice . The receivers have a responsibility to you as a tenant to protect your rights and provide a safe clean home. You can contact them to fix whatever is broken or if there is damp or no running water etc etc. They can sell with tenant is situ or with vacant possession it depends on what strategy their property managers advise in order to get the best price for the bank to help clear the borrowers debt. The issue you may have is if the borrower , your landlord at present is non co operative and harasses you to continue to pay rent to them, this can cause a lot of anguish for tenants being stuck in the middle of such disputes.
Click to expand...

I don’t expect to have issues with my landlord if he does get the property taken away, in all my years I’ve never had any issues with him and he’s been more than helpful whenever needed. Hopefully this all works out. I was mainly worried about being kicked out with very little notice.

Thanks for the detailed response, appreciate it.
 
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