The position of tenants when a landlord defaults on their mortgage

 Legal protection for unauthorised tenants

The Department of Communities and Local Government (DCLG) consulted on proposals to provide new legal protection to unauthorised tenants (where the landlord does not have their lender's permission to let the property).

When mortgage borrowers have let their properties without the knowledge or consent of lenders, tenants currently have very limited rights if the property is repossessed - which means they could face eviction at short notice. The government wants tenants in this position to receive two months' notice to vacate the property.

The Mortgage Repossessions (Tenants Protection) Act 2010 has now received royal assent. It is not yet operative but, once it comes into force, will assist tenants in this situation.