The government considers giving tenants more notice of their eviction
Posted: December 7th, 2008 | Author: James | Filed under: Uncategorized |The BBC reports that the government is currently considering changing the rules on giving tenants notice of repossession. Currently, only two weeks notice is required. This demonstrates just how precarious the rental life is in the UK, and RR would support changing this rule. However, it would be better that tenants were never exposed to this risk through amateur landlords borrowing beyond their means.
By two weeks notice of a repossession do you mean two weeks notice of the date when a lender is to repossess a property from a landlord that has defaulted on a loan secured on it. In such a case does the lender not have to adhere to any rental agreement currently in place?
If not that’s outrageous. Banks and lenders that have made BTL loans should be made to honour rental agreements in full.
In practice it may be hard to ensure that someone has not borrowed beyond their means (people or companies can conceal debt, for example, or borrow within their means and then start to live beyond them).
It would be better to ensure BTL lenders were forced to honour rental agreements to the full. That should be part of being a BTL lender.
No, lenders do not have to honour a tenancy agreement. The BBC link has case studies of people who could be forced out. Arguably, one reason for the boom in lending was that BTLs are liquid assets due to the lack of tenants security.