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Protect
persons whose tenancies are not binding on mortgagees and to require
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mortgagees to give notice
of the proposed execution of possession orders. |
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Be
it enacted by the Queen’s most Excellent Majesty,
by and with the advice and |
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consent of the Lords Spiritual
and Temporal, and Commons, in this present |
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Parliament assembled, and
by the authority of the same, as follows:— |
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1 |
Power
of court to postpone giving of possession |
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(1) |
This section applies if— |
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(a) |
the mortgagee under a mortgage
of land which consists of or includes |
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a dwelling-house brings an
action (other than an action for foreclosure) |
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in which the mortgagee claims
possession of the mortgaged property, |
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(b) |
there is an unauthorised tenancy
of all or part of the property. |
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(2) |
When making an order for
delivery of possession of the property, the court |
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may, on the application of
the tenant, postpone the date for delivery of |
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possession for a period not
exceeding two months. |
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(3) |
Subsection (4) applies where
an order for delivery of possession of the property |
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has been made but not executed. |
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(4) |
The court may, on the application
of the tenant (“the applicant”), stay or |
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suspend execution of the
order for a period not exceeding two months if— |
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(a) |
the court did not exercise
its powers under subsection (2) when making |
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the order or, if it did, the
applicant was not the tenant when it exercised |
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(b) |
the applicant has asked the
mortgagee to give an undertaking in |
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writing not to enforce the
order for two months beginning with the date |
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the undertaking is given,
and |
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(c) |
the mortgagee has not given
such an undertaking. |
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(5) |
When considering whether
to exercise its powers under this section, the court |
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(a) |
the circumstances of the tenant,
and |
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(b) |
if
there is an outstanding breach by the tenant of a term of the
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(i) |
the nature of that breach,
and |
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(ii) |
whether the tenant might
reasonably be expected to have |
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avoided breaching that
term or to have remedied the breach. |
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(6) |
The court may make any postponement,
stay or suspension under this section |
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conditional on the making
of payments to the mortgagee in respect of the |
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occupation of the property
(or part of the property) during the period of the |
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postponement, stay or suspension. |
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(7) |
The making of any payment
pursuant to— |
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(a) |
a condition of an undertaking
of a kind mentioned in subsection (4)(c), |
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(b) |
a condition imposed by virtue
of subsection (6), |
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is
not to be regarded as creating (or as evidence of the creation
of) any tenancy |
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or other right to occupy
the property. |
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(8) |
For the purposes of this
section there is an “unauthorised tenancy” if— |
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(a) |
an agreement has been made
which, as between the parties to it (or |
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their successors in title),
is or gives rise to— |
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(i) |
an assured tenancy (within
the meaning of the Housing Act |
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(ii) |
a protected or statutory
tenancy (within the meaning of the Rent |
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(b) |
the mortgagee’s interest
in the property is not subject to the tenancy. |
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(9) |
In this section “the
tenant”, in relation to an unauthorised tenancy, means the
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person who is, as between
the parties to the agreement in question (or their |
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successors in title), the
tenant under the unauthorised tenancy (or, if there is |
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more than one tenant, any
of them). |
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2 |
Notice
of execution of possession order |
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(1) |
This section applies where
the mortgagee under a mortgage of land which |
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consists of or includes a
dwelling-house has obtained an order for possession |
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of the mortgaged property. |
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(2) |
The order may be executed— |
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(a) |
only if the mortgagee gives
notice at the property of any prescribed step |
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taken for the purpose of executing
the order, and |
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(b) |
only after the end of a prescribed
period beginning with the day on |
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which such notice is given. |
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(3) |
“Prescribed”
means prescribed by regulations made by the Secretary of State. |
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(4) |
Regulations made by the
Secretary of State may prescribe the form of notices |
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and the way in which they
must be given. |
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(5) |
The regulations may make
supplementary, incidental, transitional or saving |
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(6) |
Regulations under this section
may be made only with the consent of the Lord |
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(7) |
Regulations under this section
are to be made by statutory instrument. |
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(8) |
A
statutory instrument containing regulations made under this section
is |
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subject to annulment in pursuance
of a resolution of either House of |
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(1) |
This section applies for
the purposes of this Act. |
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(2) |
“Dwelling-house”
includes any building, or part of a building, that is used as
a |
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(3) |
The fact that part of the
premises comprised in a dwelling-house is used as a |
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shop or office, or for other
business, trade or professional purposes, does not |
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prevent the dwelling-house
from being a dwelling-house for the purposes of |
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(4) |
“Mortgage” includes
a charge, and “mortgagee” is to be read accordingly. |
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(5) |
“Mortgagee” includes
any person deriving title under the original mortgagee. |
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(6) |
“Order” includes
a judgment, and references to the making of an order are to |
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4 |
Commencement,
extent and short title |
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(1) |
This Act (except this section)
comes into force on such day as the Secretary of |
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State may by order made by
statutory instrument appoint (and different days |
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may be appointed for different
purposes). |
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(2) |
An order under subsection
(1) may make transitional or saving provision. |
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(3) |
This Act extends to England
and Wales only. |
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(4) |
This Act may be cited as
the Mortgage Repossessions (Protection of Tenants |
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