Overview

The Mortgage Repossessions (Protection of Tenants etc.) Act 2010 protects tenants living in properties facing repossession due to mortgage defaults. It grants courts the power to postpone repossession orders and requires mortgagees to provide tenants with notice before eviction.

Description

This Act introduces two key provisions:

Postponement of Possession Orders

Courts can postpone possession orders for up to two months if a tenant occupies the property under an unauthorized tenancy (e.g., an assured or protected tenancy that doesn't bind the mortgagee). The court considers the tenant's circumstances and any tenancy breaches when deciding whether to postpone. Postponement can be conditional on the tenant making payments to the mortgagee.

Notice of Execution

Before executing a possession order, the mortgagee must give prescribed notice to the tenant at the property, followed by a prescribed waiting period. The Secretary of State sets these requirements through regulations, subject to the Lord Chancellor's consent.

The act defines key terms like "dwelling-house" (including properties with business use), "mortgage," and "mortgagee" to ensure broad application.

Government Spending

The Act doesn't directly involve government spending. Its impact on government spending is indirect, potentially reducing demand for social housing if it prevents some evictions and helps tenants remain in their homes.

Groups Affected

• Tenants: Benefit from potential delays in eviction, allowing time to find alternative housing or resolve issues with the mortgagee.
• Mortgagees: Face potential delays in recovering their property, but the Act offers a framework for managing the process.
• Courts: Given additional powers to manage repossession cases, considering the tenants' circumstances and potential for payment arrangements.

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