SurreyLets - Advice for Tenants. What happens when your Landlord does not pay the mortgage?

SurreyLets - Advice for tenants.How to spot if your Landlord may be defaulting on his morgage and what to do.

Throughout the history or renting property, every Landlord I have ever met has asked me "What happens if my tenant does not pay the rent?" However, more frequently tenants are now asking "What if my Landlord does not pay his mortgage"

A Somber thought as the national press this week have several articles on just such cases where good, rent paying tenants are left homeless as an unsympathetic lender actions a repossession.

Adam Sampson, chief executive of shelter comments " There is no way for tenants to know that the Landlord is behind with the mortgage payments - we have had cases where tenants find out only when the bailiffs arrive"

Its a growing problem in the current economic climate. Ian Potter, Operations Manager for ARLA explains. “Tenants, through no fault of the lender, often receive no notification of repossession proceedings as lenders are unaware of the existence of tenants in a property or who the tenants may be" ARLA are currently advising the government on how to tackle this.

Tenants - Signs that may indicate your Landlord is in arrears and what to do next.

1) If letters are frequently delivered addressed to your Landlord market urgent - don't ignore them. Open them. A good Landlord who has notified the lender he is letting will have notified them of their alternative address so there should be no need for a Lender to contact your Landlord in your rented home.

2)If Letters arrive addressed to the Occupier - open them - they may be from a lender trying to find out who is living in the property.

3) Respond to the Lender directly, detailing your tenancy agreement. They may request a copy. Oblige. Ask the lender if you should pay rent to them or a special nominated reciever going forward.

4) Contact your Letting Agent and make them aware of the situation, especially if they are collecting rent / managing the property. Continue to pay your rental, but request it is not passed to the Landlord until you have spoken to the mortgage lender.

5) Try to speak to your Landlord directly. If you cannot reach your Landlord and the lender will not discuss the case with you, Shelter offers advice to tenants and can be contacted on 0808 8004444