One solution for the Government and mortgage lenders to adopt during this time of heightened repossessions is to retain diligent tenants, argues Jo Bishop of Property Vision rental search. Repossessions are expected to rise to 200 per day in the UK by the end of the year.
‘It makes no sense for a bank to evict the tenant and try sell in the current market. This will only exacerbate the problem. The tenant will have to find a new home in a market with restricted supply, and the property will most likely sell for a deflated price.’
Instead, the Government and mortgage lenders should consider retaining diligent tenants to cover the mortgage in rent. If a tenant is up-to-date with rent and they're not in arrears, they should be seen as a potential solution, and only the landlord must be held accountable for defaulting on mortgage payments.
Tenants should take precautions to avoid being at the mercy of defaulting landlords, says Miss Bishop. ‘Tenants have the right to know if their landlord is the owner of the property and whether it is being paid for with a mortgage. They should check whether the landlord has consent from their lender to let out the property and ask to see the certificate issued by the bank. ‘
Property Vision has always requested this information for their clients even in less precarious times - often landlords don’t seek the necessary consent as it may mean higher mortgage rates.
Tips for tenants:
a) Ask your landlord questions about the financial arrangements for the property before the anniversary of the lease as a landlord’s financial situation may have changed. b) Regard mail addressed to the occupier marked ‘urgent’ or ‘confidential’ as a valuable warning sign as they have no legal right to remain in the property if it is repossessed
-
Dawn Chorus: The world's highest property has a fittingly sky-high priceOur daily round-up of news includes a flat that's 2,500 ft above the ground, our stop-you-in-your-tracks picture of the day, a chance to see two of Country Life's best-loved experts, and news about our Quiz of the Day.
-
Brockfield Hall, the great Yorkshire house that's gone from Regency mansion to modern family homeBrockfield Hall in North Yorkshire is the family home of Charlie Wood and Hatta Byng, editor of House & Garden, who have transformed it since they came here in 2020, winning multiple awards in the process. John Martin Robinson reports on the restoration project that revived this compact Regency house as a modern family home. Photographs by Paul Highnam for Country Life.
