09/10/2009 - New rights proposed for tenants
Ministers in Scotland have announced proposals to give new rights to tenants whose landlords fail to pay their mortgage.
Currently if a landlord doesn't tell their lender that a property is being let - "unauthorised tenants" could face eviction within 14 days. But under the new plans they would be granted the right to be heard at repossession hearings.
The consultation document said: "It is quite common for tenants to first become aware of the problem when the lender seeks to enforce the repossession order.
"At this stage, the tenants will have 14 days to find alternative accommodation and leave the property."
Under the proposals the repossessions could be put on hold for up to two months by the courts. This would give the tenants adequate time to move out.
The document also suggested that banks and building societies should be required to repossess properties "subject to tenancy", allowing the unofficial tenants to stay until the end of the lease. This would give them the same protection already afforded to other private sector tenants.
Up to 300 "unauthorised tenants" a year are thought to be casualties of repossession. These are cases where an owner does not tell the lender the property is let - then falls behind with the mortgage payments.
Copyright © Press Association 2009
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