When your tenancy is binding on the landlord's mortgage lender
A binding tenancy means that your tenancy continues after the property is repossessed by the landlord's lender.
You become the mortgage lender's tenant. They need to take separate action to end your tenancy if they want you to leave.
Check if you have a binding tenancy
Your tenancy could continue after your landlord is repossessed if either:
your landlord has a buy to let mortgage
your tenancy started before the mortgage
If your landlord has a buy to let mortgage
Your will usually become the mortgage lender's tenant if your landlord has a buy to let mortgage and is repossessed.
Do not assume it's a buy to let mortgage just because it's a rented property. Your landlord might have let the property out without the lender's agreement.
If your tenancy started before the landlord's mortgage
Ask the landlord or lender's solicitors when the mortgage started.
You can also search the Land Registry. It costs £3 and you can do it online.
In most cases, a lender will ask existing tenants to sign a waiver before they grant the mortgage. If you signed a waiver, you're unlikely to have a binding tenancy.
What your landlord's mortgage lender must do
Your landlord's lender must:
try to find out if there's a tenant in the property before they start repossession action
send a letter addressed to 'the occupiers' when court action starts
Let the lender know if you think you have a binding tenancy.
You may need evidence like your original and current tenancy agreements.
The lender cannot tell you about your landlord's financial situation.
If you've been told to pay rent to a receiver
The lender could put a receiver in place and ask you to pay rent to them.
This is quite common if:
your landlord has a buy to let mortgage
you have a fixed term tenancy agreement
If this happens, you should pay the receiver even if your landlord or agent say you must continue to pay them.
You should still:
A receiver has the power to sell the property. If it's sold while you're still living there, your tenancy continues and the buyer will be your new landlord.
If the lender starts court action against your landlord
You can get more information and go to the repossession hearing if you ask the court to join you to the court proceedings.
Use Form N244 to ask to be joined to the proceedings. You should do this before the hearing.
At the repossession hearing
You can speak at the hearing if you've been joined to proceedings.
You will need evidence that your tenancy should continue after repossession if the lender has not accepted this already.
If the court makes a possession order
You become a tenant of the lender when the date for possession arrives if you have a binding tenancy.
The lender takes on responsibility for things like repairs and protecting your deposit. They should tell you clearly where to pay your rent and if they sell the property.
If you do not have a binding tenancy
Your tenancy is still legal but the lender can ask bailiffs to evict you if they get a possession order against the landlord.
You can ask the court to delay the possession date for up to 2 months to give you more time to find somewhere else to live.
If you do not have a binding tenancy, the lender can ask bailiffs to evict you if you stay past the possession date in the order. You can ask the council for help if you're facing eviction.
Last updated: 5 April 2023
