Here is a blog clinic question from Marilyn
My daughter and partner moved into a rented house together on 24 June this year, having signed a tenancy agreement with Letting Agency 1.
A few days later, they had a letter through the door from Letting Agency 2, informing them that the locks were about to be changed and to vacate the property.
It turns out that the landlord had defaulted on the mortgage agreement, and the lender appointed Letting Agency 2 earlier in June to manage the house, unbeknown to Letting Agency 1.
Now the lender wants to sell the house, and Letting Agency 2 are about to instruct solicitors regarding a court hearing in order to serve an eviction order.
I’d be really grateful if you could advise whether the first letting agency is under any obligation to compensate the young couple – they will get their deposit back, but of course have paid removal expenses and so on and will now have to pay out again – that is, if they’re not homeless.
Also, does having an eviction order served against you stay on your financial or other records that might be checked by employers or credit companies, even although this was not their fault?
First of all – very bad luck. It is always tough on tenants who are evicted in this way when it is no fault of theirs. Note that there is now new legislation which says that tenants in these circumstances can require the lender to give them an extra two months to find somewhere else to live. They can’t just go in and change the locks. If the letting agency do this they will be committing a criminal offence.
So far as compensation is concerned, its a bit tricky. If the letting agents change the locks without getting a court order, then I am pretty sure that you can. However otherwise I am not so sure. It will depend on the facts of the case and whether the agents were obviously negligent.
Have a look at my blog post here which gives some guidance. If you want to stay in the property it may be worth seeing if the lender will let you stay on if you pay the rent to them – its worth a try.
So far as credit records are concerned, you need to do a search against you own name and ask the credit reference company to correct any errors – which they should do.
Unregulated letting agents strike again.
In October 2010 a new law that Tessa alludes to was introduced. The Mortgage Repossession (Protection of tenants) Act 2010 came into force.
It doesnt apply to tenants of buy to let mortgages, just the huge amount of tenancies created by landlords whose mortgage company didnt know about the sub letting.
In such cases the tenant should contact the lender letting them know of their occupation and asking them to allow 2 month’s grace to allow them to find somewhre else to live. A woird from the wise….the bank will normally refuse so the tenant will have to apply to court, using form N244, to ask the courts to overule the banks refusal and grant the 2 months.
In a recent case of mine, 2 days before the locks were due to be changed the agents charged the tenants (A non English speaking Brazillian woman and her 2 children)£165 to sign a new 6 month agreement and forged the landlords signature ( A Nigerian resident)on the new agreement. Do you think that agent knew about the impending eviction???? You betcha.
Having said that, the agents in this case may well have been duped by the landlord.Letting agent #2 wouldnt necessarily have known the letting history with agent #1
Just another reason to have these things coordinated nationally.
I would have thought that letting without the mortgage lenders consent could well be foul of the Accommodation Agencies Act, requiring lawful consent to advertise the property to let. I can’t see the landlord could give permission if the mortgage agreement prohibited. Since breach of this is a criminal offence carrying a fine I would have thought the agent should be pretty co-operative to help sort out their mess.
Yes I know agents have a duty to ensure that they can actually let the property but I have never known one to do it, thats why they had to bring in the new Act.
Nor have I ever known trading standards to do an agent for not checking.
Also mortgage lenders kind of turn a blind eye as well. If it comes to light they usually just whack the mortgage rate up a notch to a business rate and thats it. Happy for the extra income.
Many agents let out council properties bought on the right to buy which cant be let out for the first few years. Some of our just sub let council properties that are still owned by the council. We evict in these circumstances but dont take action against the agents
Ben, firstly, to what “new act” are you referring?
Secondly, Winkworths in London were prosecuted for letting a council owned property so it does and can happen. Sure it would happen less if people knew enforcement was more likely?
The Mortgage Repossession (Protection of Tenants) Act 2010 which they brought in because so many unwitting tenants were woken by court bailiffs executing possession warrants when the tenants knew nothing of their landlords mortgage default. Now in non buy to let mortgages the lender has to send a pre action letter to any occupiers in a property, known as a “Notification of execution of warrant”. If the tenants open it they can ask the lender to allow them up to 2 month’s grace to make other arrangements.
Of course the banks usually refuse so the tenant has to apply to court and judge will over-rule it.
Oh I dont doubt that it can happen David, I am saying it rarely does. I dont think the odd prosecution would make much difference to our rogue agents though. There is too much money to be made by not asking questions if you are an agent. Plus with our dodgy ones (remember I work in South East London so there are loads) letting properties they arent supposed to is small potatoes compared the other stuff they get up to.