Housing minister Margaret Beckett has recently announced a proposed change to the law governing tenants rights in the event of a property being repossessed by a lender.
The change would insure that any tenant is guaranteed two months notice if they are to be required to leave their home. On the face of it this seems to be a fair and just change and indeed, most would consider it common sense. As the website www.landlordexpert.co.uk points out, though, things are rarely as simple as they look.
One complication with this situation is the number of landlords who have bought houses on a residential mortgage even though they are actually renting it out. In that case, it is unlikely that the lender is even aware of the existence of a tenant. Most lenders are happy to honour the tenancy of a property if the tenant has been prompt with payment of rent and stuck by all other important obligations, but it can still put the lender in a difficult position. There is a very fine line to tread here between protecting the rights of the tenant but also protecting the interests of the lender. The government is expected to consult on these proposals over the summer and legislation should be in place by by 2010.
