Tenant's Right to Apply to Postpone Possession Frustrated

A recent case has highlighted the importance of properly notifying tenants of possession proceedings, after a court found that a tenant’s legal right to request a delay to eviction had been unfairly frustrated.

The decision reinforces the protections available to tenants under the Mortgage Repossessions (Protection of Tenants etc) Act 2010, particularly where landlords have breached mortgage terms.

Background to the Case

The tenant had entered into an assured shorthold tenancy with a leaseholder who had a mortgage secured against the property. The mortgage lender later commenced possession proceedings against the leaseholder.

Under the relevant legislation, tenants in such circumstances have the right to apply to the court to postpone possession for up to two months, allowing them time to secure alternative accommodation.

Failure to Receive Notice

The lender attempted to serve notice of the possession proceedings by first-class post, in line with regulatory requirements.

However, the tenant argued that she had never received the notice, as the flat numbering system in the building had recently been changed. As a result, correspondence was not delivered correctly.

The Lender’s Position

The lender maintained that it had complied with the rules by sending the notice via first-class post, as permitted under the Dwelling Houses (Execution of Possession Orders by Mortgagees) Regulations 2010.

Court’s Decision

The Court found in favour of the tenant, concluding that:

• The purpose of the legislation is to protect tenants who may otherwise be unaware of possession proceedings
• The lender was aware of the changes to the flat numbering
• Relying solely on postal service in those circumstances was insufficient

The Court held that the lender should have taken additional reasonable steps to ensure the tenant was properly notified, such as using alternative methods of service.

Key Takeaway

This case highlights that:

👉 Strict compliance with service rules may not always be enough, particularly where there is a risk that notice may not be received.

Lenders and landlords must ensure that tenants are given a genuine opportunity to exercise their legal rights, including the right to request additional time before eviction.

Why This Matters

For tenants:

• You may have the right to delay eviction
• You must be properly notified of proceedings
• Failure to receive notice could affect the validity of possession

For landlords and lenders:

• Care must be taken to ensure effective service of documents
• Courts will consider the purpose of tenant protection legislation, not just technical compliance