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A Landlord is under a duty to obtain consent before a property is rented out.
It appears to me that unfortunately the Landlord did not obtain consent from his Mortgage Lender to rent out the property to your friend. Otherwise, he would not have received a letter from the Mortgage Company.As such, the Courts deem the Tenancy Agreement invalid.
The Mortgage Company will no doubt be issuing such court proceedings to repossess the property, and the Court will order yor friend to vacate.
I am afraid the fact that your friend has always paid the rent on time is no defence and the Court will still order that he vacates (normally within 14 days of any repossession order).
I am sorry for the bad news, but hope I have set out the legal position.
The landlord did get permission from the Mortgage company to let the property. The tenant asked the question as an estate agent was involved initially.
Thanks for your reply.
Well, if consent was obtained, the Mortgage Company have to honour the existing Tenancy Agreement, and your friend won't be asked to leave earlier than the end date of the Agreement.
It does seem strange that the Mortgage Company has written as they have, if consent was obtained. Your friend should therefore try and speak to the Mortgage Company to clarify the position.