Notice of Mortgage : Recovery of Possession of Dwellinghouse Let on Assured Tenancy - [LT20E] - (2 pages)
This form is a notice that a mortgagee plans to recover possession of a mortgaged property
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1. HA26 is a notice served on the tenant by the landlord, stating that the property may be recovered under Schedule 2, Ground 2 of the Housing Act 1988 which states that:
The dwelling-house is subject to a mortgage granted before the beginning of the tenancy and—
(a) the mortgagee is entitled to exercise a power of sale conferred on him by the mortgage or by section 101 of the Law of Property Act 1925; and
(b) the mortgagee requires possession of the dwelling-house for the purpose of disposing of it with vacant possession in exercise of that power; and
(c) either notice was given as mentioned in Ground 1 above or the court is satisfied that it is just and equitable to dispense with the requirement of notice;
and for the purposes of this ground “mortgage” includes a charge and “mortgagee” shall be construed accordingly.
Therefore, this ground is used where the residential property is subject to a mortgage which was granted before the tenancy started and the lender, usually a bank or building society, wants to sell it, normally to pay off mortgage arrears.
2. The landlord must serve HA22 on the tenant on or before the day on which the tenancy is entered into (Schedule 1 Part IV, para 11), and is therefore a prior notice ground. However the court may dispense with the requirement of the notice if it considers it just and equitable.
3. In order to seek possession of an AST during the fixed term under Ground 2 the landlord should serve a Section 8 Notice (HA32) on the tenant. When tenants are served a HA32, they should leave by the expiry date. If a tenant does not leave, the landlord will have approach the Courts to apply for a Possession Order.
4. If the Court is satisfied that Ground 2 is established, as a mandatory ground the court must order possession. Where the landlord is seeking possession under Ground 2 court proceedings cannot begin earlier than 2 months from the date the Section 8 Notice is served on the tenant and not before the date on which the tenancy could have been brought to an end by a notice to quit served at the same time as the HA32.
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