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Mandatory Grounds for Possession

What is the Ground 2 - Repossession by Lender (prior notice ground)?

Ground 2 of Schedule 2 of the Housing Act 1988 sets out that a mortgage lender has the right to possession of a mortgaged property, and that this can happen even if there has been no default by the mortgagor.

A ground 2 notice notifies a tenant, before a tenancy is granted, that the rented property is subject to a mortgage. It further confirms that possession may be sought in the future by the mortgage company and that in that instance, the landlord may serve notice for possession.

As with ground 1, this notice MUST be served prior to the tenancy commencing.

Forbes Comment

If you are have a mortgage over a property you are about to rent out, contact our specialist Landlord Complete Team for advice and guidance about issuing a notice under ground 2.

For more information contact Samantha Abdoollah in our Forbes Landlord Assist department via email or phone on 01254 222456. Alternatively send any question through to Forbes Solicitors via our online Contact Form.

Learn more about our Forbes Landlord Assist department here

Review Hearings in Possession Claims