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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25426
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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We rent from a private landlord and have an Assured Shorthold

Resolved Question:

We rent from a private landlord and have an Assured Shorthold tenancy agreement which currently runs until June. I have no reason to believe that this will not be renewed. We have been in the property for 4 1/2 years.
We rent from a Company director of a building company who built our estate so I have no idea if there would be an original mortgage on our house. We have received a letter from the Landlord's Solicitor in connection with a Mortgage being sought on the property we rent with a Deed of Postponement to sign and return.
What implications should we be wary of signing and returning this please? Thank you
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

From what you say you are keen at this stage from your point of view to remain in the property - is that correct please?

Customer:

Yes it is. We do want to stay renting here.

Joshua :

Thanks. The purpose of the deed of postponement is to put your rights as tenant behind the mortgage. However I am curious as to why you have been sent this because the landlord would need a buy to let mortgage rather than a residential mortgage for the property and BTL mortgages do not typically require such notices because the lenders accept that tenants are in the property and simply require a copy of the tenancy agreement.

Joshua :

This is not your problem as such as it is the landlords responsibility to give the lender correct information however the effect of the deed is that you could be evicted by the lender irrespective of your tenancy if landlord fails to keep up repayments.

Customer:

Have you any advice as to what to do next?

Joshua :

Accordingly you may wish to consider contacting the landlord or his solicitor advising that whilst you are happy to cooperate in principle you do not understand why you are being to asked to sign this document as you are tenants and the mortgage the landlord should be obtaining should be a buy to let mortgage where such deeds are not typically required. You may ask for confirmation that the mortgage is buy to let and an explanation for the request.

Joshua :

From your point of view you would like to see confirmation from the lender that your tenancy would be respected in the event of repossession. This would not be a condition contained in the mortgage indicating that the lender is aware of the tenancy.

Customer:

Thank you. Lastly, can I just confirm that once I have done the above, if they still require it signing then, other than it meaning that we would be evicted regardless of tenancy agreement if the landlord doesn't pay the repayments, there are no other ramifications.

Joshua :

The above deed should not be required in such circumstances and a detailed explanation as to why it is should be obtained. My suspicion is that the landlord may be obtaining a residential mortgage instead of a BTL mortgage or that the matter is being dealt with by someone who is unfamiliar with BTL mortgages at the solicitors or has not read his instructions carefully but lenders can come up with funny requests.

Customer:

Ok, so really, this in our circumstances won't be a document required?

Joshua :

I cannot say conclusively without knowing there response that it would definitely not be required - there may be an explanation for it but I cannot immediately see why such a document should be required in such circumstances.

Customer:

Thank you for your patience as I have gone over and clarified to check I understand things. I appreciate your help. Thank you.

Joshua :

A pleasure. If I can assist any further as the situation develops please do no hesitate to let me know.

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.

Customer:

Ok, that's no problem. Thank you

Joshua :

Many thanks

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