But the new rules, which came into force 1st October 2010, mean that tenants will for the first time be able to attend the court hearing, and judges will be able to take their situation into account and delay repossession by up to two months to give them more time to find a new home.
The new guidance makes clear the rights these tenants have when their landlord faces repossession action, but also sets out the steps lenders must take. These changes come as part of the Mortgage Repossessions (Protection of Tenants etc) Act 2010.
Housing Minister Grant Shapps said:
"Of course all landlords should get permission from their lender before renting out their home. But when landlords don’t, and they face the real prospect of repossession, their tenants should not be left worse off than any other tenant as a result.
"That’s why I backed the Mortgage Repossessions Bill last year so tenants can have their voices heard in court, and can get enough time to find a new place to live.
"As with all homeowners, I expect lenders to seek repossession only as a last resort. But where action is being taken against a landlord, their tenants must get a fair amount of time to find themselves a new home."
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