# Bank reposession of tenanted property, what are the tenants rights?



## Ray&Rachelle (May 21, 2017)

Hi we have been living in a rented house for the last 18 months and our rent is up to date.

We learned a few days ago that the bank are repossessing the property and have been told (verbally by the landlord) that we need to be out by the end of August.

We want to stay longer, at the very least until the anniversary of the tenancy agreement which is the end of October as our apartment in London is leased out until then, but ideally longer still, until we are in a position to buy.

The property is in a development of about 20 similar houses with communal pool and gardens which are maintained by the landlord currently. A few houses were previously sold to private owners and about half a dozen have families in permanent residence. The rest are either unfinished or holiday lets. All of the long term tenants have been told the same thing. We have nothing in writing.

Does anyone know what our rights are? Or what we can do to extend our stay?

We have a small dog and our own furniture so moving is more difficult that it might be otherwise.

Ray and Rachelle


----------



## siobhanwf (Mar 20, 2009)

It might well be worthwhile contacting the bank (if you can find out which one) they might be happy to receive rental.


----------



## Naaling (Apr 9, 2015)

I smell a rat here!
When the bank repossesses the property, your landlord won't be your landlord any more. Why would it be any of his/her business if you stay or go?
Portugal has strict tenancy laws. I don't think its possible to deny a person their home if they have a lease and are meeting the terms of that lease.


----------



## Strontium (Sep 16, 2015)

Do not take legal advice from an internet forum. Get a lawyer. If there are others households with the same lease+ freeholder as you and have been given the same notice to quit then maybe get a lawyer jointly.


----------



## Naaling (Apr 9, 2015)

Strontium said:


> Do not take legal advice from an internet forum. Get a lawyer. If there are others households with the same lease+ freeholder as you and have been given the same notice to quit then maybe get a lawyer jointly.


I'm not offering legal advice. 
Just pointing out that the situation may not be what it seems. 
Whether they go to a lawyer or the bank, the OP needs to find out what is really going on before taking any action.

I think siobhanwf's suggestion of going to the bank is the obvious and cheaper first step. If the landlord can't or won't provide that information, then it might be time to see a lawyer.


----------



## travelling-man (Jun 17, 2011)

Bearing in mind your location, that all the long term tenants have been told the same thing but had nothing in writing from the landlord or any bank & that we're just coming into the summer season I'd rather suspect he's trying to move you out so he can get the more profitable holiday lets in & with that in mind, I'd be inclined to go straight to a lawyer who isn't too local & seek his advice. 

If a group of tenants could get together & split the cost, so much the better.


----------



## Strontium (Sep 16, 2015)

Naaling said:


> I'm not offering legal advice.
> Just pointing out that the situation may not be what it seems.
> Whether they go to a lawyer or the bank, the OP needs to find out what is really going on before taking any action.
> 
> I think siobhanwf's suggestion of going to the bank is the obvious and cheaper first step. If the landlord can't or won't provide that information, then it might be time to see a lawyer.


No-one said you were giving legal advice.
Generally dealing between a bank and their client are confidential etc. etc. 
A legal opinion on a lease would indicate if there was a likelihood that the freeholder can have them evicted or not and then they could decide what to do next. Stay or leave. Generally lawyers are registered to access "land registry" which will show who the legal freeholder is and if monies have been taken against the house(s) and who made the loan if any ie the bank. 
There is no other obvious way to find out " what is really going on" as there is only unsubstantiated information from other leaseholders.


----------



## Naaling (Apr 9, 2015)

Strontium said:


> No-one said you were giving legal advice.
> Generally dealing between a bank and their client are confidential etc. etc.
> A legal opinion on a lease would indicate if there was a likelihood that the freeholder can have them evicted or not and then they could decide what to do next. Stay or leave. Generally lawyers are registered to access "land registry" which will show who the legal freeholder is and if monies have been taken against the house(s) and who made the loan if any ie the bank.
> There is no other obvious way to find out " what is really going on" as there is only unsubstantiated information from other leaseholders.


Confidentiality doesn't come into it. The tenants have no interest in Landlord's loan agreement with the bank. However as signatories to the rental agreement, they have every right to discuss that arrangement with their new landlord. And doesn't it make sense to do that before seeking legal advice?


----------



## Maggy Crawford (Sep 18, 2010)

Just wondering who you pay your rent to? Surely that is an indication of whom you should be dealing with?


----------



## Strontium (Sep 16, 2015)

Naaling said:


> Confidentiality doesn't come into it. The tenants have no interest in Landlord's loan agreement with the bank. However as signatories to the rental agreement, they have every right to discuss that arrangement with their new landlord. And doesn't it make sense to do that before seeking legal advice?


This is not legal advice but there is a slight chance that possibly maybe in Portugal the property owner can borrow money which is tied to the property so if/when the property changes ownership the new owner gets the property AND any debt tied to it. This can be looked at as a loan between the bank and the property and the "ex-landlord" walks away free of the loan Hence a $100,000 property may be worth $27 if there's a $99,973 debt tied in, information available from up to date "land registry". 

Usually a rental agreement (though this is leasehold) is a contract between two parties so any third party/new owner is not a signatory to the rental agreement.


----------



## Naaling (Apr 9, 2015)

Strontium said:


> This is not legal advice but there is a slight chance that possibly maybe in Portugal the property owner can borrow money which is tied to the property so if/when the property changes ownership the new owner gets the property AND any debt tied to it. This can be looked at as a loan between the bank and the property and the "ex-landlord" walks away free of the loan Hence a $100,000 property may be worth $27 if there's a $99,973 debt tied in, information available from up to date "land registry".
> 
> Usually a rental agreement (though this is leasehold) is a contract between two parties so any third party/new owner is not a signatory to the rental agreement.


In the situation you describe, the new owner would not have been a signatory to the original loan agreement either, but that doesn't mean he doesn't have to pay it back.

Furthermore, are you really saying that confidentiality would prevent the Bank communicating with the existing tenants about the terms of the lease?


----------



## siobhanwf (Mar 20, 2009)

A couple of years ago we had a situation in our village where an expat couple were renting a property from a builder. They had planned on buying the property when they had sold in the U.K. 
They had paid a very hefty deposit on the house. 
The deposit went towards an agreed rent.
Builder went bankrupt and the bank took over the agreement and the expat couple stayed in the house until they decided to go back to UK.


----------



## Maggy Crawford (Sep 18, 2010)

Some years ago near here a British couple (with disaster written all over their foreheads) bought a property with a mortgage from BES. Heaven knows how because they had no visible means of support and were well below pension age. They finally fled back to UK leaving the property. They managed to find a tenant who then paid the rent direct to the bank. The tenant then left and the bank still has it.


----------

