Property News Archive
'Secret' tenants set to be given protection against eviction
Friday 7th August 2009 - Estate Agent Today
Tenants in properties owned by landlords who have not told their lenders that they are renting them out could be given greater protection if their homes are repossessed.
Under new proposals, such tenants will be allowed to stay in the property for two months after the house is repossessed, instead of facing immediate eviction.
It is thought there are thousands of landlords who have rented out properties without telling their lenders, either through ignorance of the requirement or to avoid being forced on to more expensive - and scarce - buy-to-let mortgages.
Lee Grandin of Landlord Mortgages told The Times: "The problem of landlords not taking out buy-to-let loans is widespread and has become worse as buy-to-let lending has dried up.
"We are taking more calls from landlords saying the property is on a residential mortgage and they need to switch it over to buy-to-let.
"Then they find out that they will be much worse off on the buy-to-let deal and we don't hear from them again. They have conflicting feelings. Morally, they know they should switch, but financially, they can't do it."
The Government's latest proposals are now out for consultation.
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