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New notice period for tenants facing homelessness

Wednesday 27th May 2009

Housing minister Margaret Beckett has announced a proposed amendment to the law, which would give tenants whose landlord is facing repossession extra time to find somewhere else to live.

The proposals will ensure tenants are given two months' notice by mortgage lenders who have taken possession of their landlords' house.

However, the Council of Mortgage Lenders (CML), has warned about the potential of some tenants to fall through the cracks and end up homeless, especially those who are renting a property unofficially.

The CML claimed that tenants that have a legitimate agreement with a buy-to-let mortgage holder will already be recognised by the lender taking charge of the property.

But, some people are renting from landlords who have not received permission from their lender to take on a tenant, even though that breaches their mortgage terms and conditions.

The CML wants to work with the government to address the complicated legal position faced by lenders, who are obligated to the borrower even though they are in breach of their mortgage.

According to Landlord Assist, the cost of becoming a landlord is increasing and the added strain is putting many off the prospect.

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