Preventing court action

This content applies to England only.

Housing laws vary between England and Scotland. This page applies to England only. Get advice relating to Scotland

Lenders can take legal action to get back the money you owe them, and freeholders can also take you to court if you break one of the conditions of your lease. In either situation, it may be possible to avoid going to court.

BE CAUTIOUS: Always get independent advice before you make any decisions. Bear in mind that in most cases, giving the keys to your lender or signing up to a mortgage rescue schemes (where your home is bought by a company who then rents it back to you) will usually make problems worse in the long run.

Where can I get help?

If you are threatened with repossession for any reason, you should talk to an adviser at a local advice centre as soon as you can. Use our directory to find one. An adviser may be able to help you to negotiate and avoid the time and expense of going to court. It's often possible to prevent arrears or disagreements from leading to repossession.

My lender is trying to evict me

If you are having problems paying your mortgage, most lenders will only repossess your home as a last resort. They usually prefer to sort out your payment problems in other ways. Your options will probably depend on:

• what type of mortgage you have
• how far behind you are with payments
• the reasons for your arrears (such as losing a job).

If your lender or its solicitor contacts you about your arrears, don't ignore their letters or phone calls. If you don't respond, your lender is much more likely to take you to court. If you are not sure how to respond, get in touch with a housing aid centre or citizens advice bureau. They may be able to help you come up with a proposal to control your arrears and keep your home.

Letters from your lender

In most cases, the first thing you will receive is a letter reminding you that you have missed one or two payments. It will normally ask you to:

• confirm how you intend to catch up on the missed payments, or
• contact your lender to discuss your financial situation.

If your lender isn't satisfied with your proposals, or your arrears increase, it will probably write to you again. The second letter usually says that solicitors will get involved if you don't clear your arrears or contact your lender to discuss the situation within seven days. It is usually better to negotiate with your lender before solicitors are involved, as they may be unhelpful. A housing aid centre or citizens advice bureau can help you do this.

Letters from your lender's solicitor

When solicitors get involved, they will send you a letter giving you seven days to pay off all your arrears or make a proposal for doing so. If they are not satisfied with your response, they can start court action without any further warning.

It is definitely still worth trying to negotiate at this stage. Even if you can't come to an agreement, the court is more likely to be sympathetic if you made an effort to sort things out before legal action was started. An adviser can help you do this.

The freeholder is trying to evict me

It's very rare for a freeholder to evict a leaseholder. This can only happen if you break one of the conditions of your lease (such as not paying the service charges or ground rent) and your lease has a clause that says that it can be ended (forfeited).

If you can put the problem right (for example by paying off what you owe), the legal action will automatically stop and your lease will continue as before. If you can do this before the freeholder applies for a court hearing, you will avoid the legal costs involved, which can be expensive.

You should get advice immediately if your freeholder threatens you with repossession. If your freeholder tries to evict you without following the correct procedure, it may be a criminal offence.

Leasehold valuation tribunals

In many cases, financial disputes between leaseholders and freeholders can be taken to a Leasehold Valuation Tribunal (LVT). An application can be made by you or your freeholder. LVT hearings usually works out less expensive than a court hearing, and can settle disagreements about:

• who has to insure the building
• how high your service charges are and the quality of services provided
• how much you have to pay to extend your lease.

The Leasehold Advisory Service website has more information.

If the case goes to court

If you have not been able to stop your lender or freeholder from starting court action, it doesn't necessarily mean that you will lose your home. It's still worth trying to negotiate a solution before the hearing. If this isn't possible, the court will listen to both sides and will decide what should happen to your home.

You should get advice before the case goes to court. The options that may be available may depend on the reasons why you have been threatened with repossession. An adviser can explain your options and whether the court is likely to allow you to stay in your home.