High Mortgage Payments and Defaulting Tenants – Increases Eviction Cases?

Landlords are highly frustrated due to recession. They are unable to meet their mortgage payment and other financial commitments. Moreover, their tenants are not paying them rent on time due to reduction in their salary or have been laid off by their employer. As a result, landlord is resorting to legal ways of evicting a tenant as he is unable to meet his financial commitments.

If a landlord has a "buy-to-let" mortgage, the lender is legally obliged to give the tenant two months statutory notice. A tenant may be paying his rent on time despite of that he will have to face the consequences of his landlord not making the mortgage payments. By law, it is mandatory to offer some notice period to the tenant and not evict him for landlord’s mistakes. At times, a landlord may be away from home and has missed paying out the loan payments. Tenants nevertheless are making payments to the landlord. So, they need not be scrutinized for some one else’s mistake. However, if he doesn’t make his rent payment on time, then the home owner has all the right to evict him. In case, he is unable to pay rent due to loss of job and no earnings, then, a buy to let homeowner can claim the rental loss from the insurance company.

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