Landlords warned of new law to speed up repossessions

Residential landlords have been warned of a new law that will make it easier for lenders to reposes homes much quicker than seen before.

Under the Tribunals, Courts and Enforcement Act 2007 lenders can obtain a charging order more easily, when obtained the lender can then force the debtor to sell the property in order to settle the debt.

The new amendment to the law comes at a time when homeowners and landlords alike are struggling with higher interest rates and repayments.

Those landlords that bought in the last two years close to the peak of the property market and with a small deposit are the most at risk from keeping up repayments.

The likely result is that there is going to be an increase in orders for sale being sought when the section of the act comes into force.

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19/09/2008 09:34:12