The position of unauthorised tenants when a landlord defaults on their mortgage

Legal protection for unauthorised tenants

The Department of Communities and Local Government (CLG) 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 let their properties without the knowledge or consent of lenders, tenants had very limited rights if the property is repossessed - which meant they could face eviction at short notice. The previous government's stated policy intention was that it wanted to tenants in this position to have a notice period not exceeding two months to vacate the property.

The Mortgage Repossessions (Protection of Tenants etc) Act 2010 is intended to bring this policy into effect. It came into force on 1 October 2010.