Rent Payments When a Property Is Repossessed in England

When a landlord’s property is repossessed in England—usually when the mortgage lender takes possession due to landlord arrears—it can create confusion and concern for tenants. This guide explains what happens to your rent payments during repossession, your legal protections, and the steps you should take as a renter, according to the Housing Act 1988 and current government guidance.

Understanding Property Repossession

Repossession occurs when a mortgage lender (often a bank or building society) takes back ownership of a property because the landlord hasn’t kept up with mortgage payments. As a tenant, you may have questions about your living situation, rent, and rights. Here’s what you need to know about your position during and after repossession in England.

What Happens to Your Tenancy if the Property Is Repossessed?

Most rent arrangements in England are assured shorthold tenancies (ASTs). While your landlord’s lender can repossess the property, your right to stay depends on whether the lender was notified of your tenancy:

• If the tenancy was agreed before the mortgage: You may have the right to stay until the agreement ends.
• If the tenancy is an AST and the lender wasn't notified or didn’t consent: The lender can usually apply to evict you with a court order.

In most cases, repossession doesn’t mean you must leave immediately. The lender must apply for an eviction through a court, and you have the right to be notified and attend the hearing.

Your Rent Payments During the Process

While repossession is underway, you should continue paying rent as usual. Your obligation exists until you receive formal notice from the lender or new owner. Until then:

• Keep paying rent to your original landlord (unless instructed otherwise by the court or new owner)
• Keep all rent receipts and communications as evidence
• If the property changes hands (lender or new owner), wait for official written notification before changing payment details

Do not stop paying rent without guidance; missing payments can create legal complications and affect your ability to reclaim your deposit or secure future housing.

What Notices and Forms Will You Receive?

• Notice of Court Hearing: You’ll receive notification of the date when the lender will ask for a possession order. Attend this hearing if possible to state your case or request extra time.
• Section 21 or Section 8 notice (Form 6A or Form 3): These are standard forms for ending an AST, but a lender must instead use a court process against occupiers or tenants. For details about notices, review Eviction notice rules for tenants.
• Form N28 (Possession Order): If the lender is successful, the court issues a Possession Order (Form N28) stating when you must leave.
• Form N54 (Warrant of Possession): For forced eviction, you may receive a Notice of Issue of Warrant of Possession (Form N54). This gives details of eviction enforcement by bailiffs.

If you receive any court documents or orders, seek legal advice immediately. You can find help via First-tier Tribunal (Property Chamber) or local advice agencies.

Can You Stay in the Property?

Some tenants may be able to negotiate with the new owner or lender to remain in the property. This is more likely if your rent is up to date and the lender wishes to sell with tenants in place. However, there is no automatic right to stay unless your tenancy predates the mortgage or was agreed with lender consent.

What Are Your Legal Rights and Protections?

Your main rights during repossession in England are:

• Receive official notice before any action is taken against you
• Attend the court possession hearing and present your situation
• Request extra time before you have to leave (up to 6 weeks in cases of exceptional hardship)
• Claim back your deposit from your landlord’s protection scheme (see government guidance on tenancy deposit protection)

The lender or new owner must also follow court procedures, and you cannot be lawfully evicted without a court possession order and warrant.

Relevant Tenancy Legislation

• Housing Act 1988 – sets out rules for possession and tenant rights in England
• Assured Shorthold Tenancy Notices and Prescribed Requirements Regulations 2015

If you think your eviction is unfair or was not lawfully carried out, you can challenge it via the First-tier Tribunal (Property Chamber).

Steps to Take If Your Home Is Being Repossessed

• Stay calm and do not move out immediately—wait for official orders
• Keep all communications with your landlord, lender, or new owner in writing
• Seek advice from housing experts or your local council’s housing team
• Gather documents (tenancy agreement, deposit protection certificate, rent records)
• Prepare for the court hearing and explore your options to delay or negotiate

This preparation will help protect your rights, ensure you don’t lose money, and give you the chance to stay in your home for as long as possible.

FAQ: Rent and Repossession for Tenants in England

1. Do I have to keep paying rent if my landlord’s property is repossessed?
   Yes, continue paying rent to your landlord unless you are instructed in writing by the lender or court to pay someone else. Stopping payments without guidance can risk your deposit or affect your tenancy record.
2. How much notice will I get to leave if the lender repossesses the property?
   You must receive a court order (possession order) and will usually be given time to move out, often up to 14 days or more if you request extra time due to hardship.
3. Who gets my deposit back if the property is repossessed?
   Your original landlord remains responsible for returning your deposit. If the deposit was protected in a government scheme, you may need to contact the scheme provider for guidance.
4. Can I negotiate to stay after repossession?
   Sometimes. If the lender or new owner is willing, you may be able to sign a new tenancy agreement. There is no guarantee, so speak to them as soon as possible.
5. What if I receive court papers or eviction notices?
   Seek immediate advice, attend any hearings, and keep all paperwork safe. You can get support from the First-tier Tribunal or a housing advice service.

Conclusion: Key Takeaways

• Pay rent as usual until given official instructions by a lender, new owner, or court
• You have rights to notice, court processes, and time before eviction
• Keep all paperwork, seek help early, and don’t ignore any official notices or court orders

If your landlord’s property is being repossessed, understanding your rights and taking prompt action will help protect you and provide the best chance of secure housing moving forward.

Need Help? Resources for Renters

• Government advice on private renting
• First-tier Tribunal (Property Chamber) – handles disputes and challenges about tenancies in England
• Shelter England’s advice on repossession
• Citizens Advice guide: if your landlord’s lender is repossessing your home
• Local council housing team (find via Find your local council)

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1. Housing Act 1988
2. Official government guidance: Eviction notice for tenants
3. Form N28: Possession Order
4. Form N54: Notice of Issue of Warrant of Possession
5. Tenancy Deposit Protection: Government Guidance
6. First-tier Tribunal (Property Chamber)

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