Bank coming to survey my rented flat

Tyrone77 · 29 Jul 2011 at 12:52

Quick question,

Is this normal? Just concernd that I dont have to move out... I got 6 months left on my contract. Would prefere to stay longer than 6 months...

Letting agent called today and said I had nothing to worry about. But I had similar situation happen before where letting agent said not to worry when my neighbours had to move out and low and behold 2 months later I got told I had to move!

hood1971 · 29 Jul 2011 at 13:05

Doubt the bank would come survey if he was selling. Possibly remortgaging or moving it to a different bank.

Tyrone77 · 29 Jul 2011 at 13:07

ah yeah forgot about that possibility, thank you.

Skidder · 29 Jul 2011 at 13:07

may be defaulted on mortgage

DB_SamX · 29 Jul 2011 at 13:11

It is normal if the landlord/owner is considering remortgaging.

Tyrone77 · 29 Jul 2011 at 13:31

Skidder said:
may be defaulted on mortgage

what happens in that situation? Am i covered in any way?

Skidder · 29 Jul 2011 at 13:34

Tyrone77 said:
what happens in that situation? Am i covered in any way?

no idea, it's reasonably unlikely as you are presumably paying rent, he is presumably able to cover his mortgage. much more likely that they are looking at a new deal and since the markets have fluctuated even an existing lender may insist upon a valuation rather than using an index

Mr Jack · 29 Jul 2011 at 14:02

Tyrone77 said:
what happens in that situation? Am i covered in any way?

Yes, you are. A recent change in the law gives protection to tenants in houses on which the landlord defaulted on their mortgage. You'd have to move out, but they have to give you some notice before you have to do so rather than being turfed out on your ear.

If it's a flat, remortgage is most likely, I would think.

B@Th*nG · 29 Jul 2011 at 14:15

Mr Jack said:
Yes, you are. A recent change in the law gives protection to tenants in houses on which the landlord defaulted on their mortgage. You'd have to move out, but they have to give you some notice before you have to do so rather than being turfed out on your ear.

Actually that's not strictly true as I was in a similar situation a couple of years ago.

The landlord has to have actively told his mortgage company that he is letting, which a fair proportion of them don't. This means that, if he has defaulted on his mortgage, it'll go to court to decide what needs to be done. If the judge rules that they should take his house then you're out on your ear sunshine! no ifs, no buts, tata!

However, if this was the case then you will have CERTAINLY received mail, addressed to him, from the mortgage/legal company with things like "not a circular, IMPORTANT!!!" written on it, or some such similar.

I actually went to the court appearance and the judge was NOT a happy bunny. Neither with the landlord or the mortgage company. The judge wanted to take the house because the landlord was basically saying he could only afford to pay what we were paying him in rent (which was below the mortgage repayments), but the mortgage company (who to all extents and purposes are the "prosecution") pleaded with the judge to allow this minimum payment and he eventually agreed; well, i say agreed, it was more like "AHHHFFSFINEYOURANINSULTTOMYEARS" hehe.

Your thing is not what this seems to be, so I think you're OK in the short term

B@

Mr Jack · 29 Jul 2011 at 14:36

B@Th*nG said:
Actually that's not strictly true as I was in a similar situation a couple of years ago.

I was under the impression the law was changed more recently than that. But I certainly can't claim to be an expert on the matter.

B@Th*nG · 29 Jul 2011 at 15:15

Mr Jack said:
I was under the impression the law was changed more recently than that. But I certainly can't claim to be an expert on the matter.

it was changed JUST before our issue, unless there's been further development. It would have been fine if he'd have informed his mortgage company he was letting and what you have said would have stood.

B@

Mr Jack · 29 Jul 2011 at 15:31

B@Th*nG said:
it was changed JUST before our issue, unless there's been further development. It would have been fine if he'd have informed his mortgage company he was letting and what you have said would have stood.

Okay, I shall take your word for it