Here is a question to the blog clinic from Geoffrey who is probably a tenant (he did not say).
The landlord has given a 12-month tenancy agreement without his lender’s permission to let the property. The property is now being repossessed by the lender.
Is the tenancy agreement now Null and Void?
No. As between the landlord and the tenant, the tenancy agreement is still valid and enforceable. Sorry.
However, if the tenant is evicted due to the property being let in breach of the landlord’s mortgage conditions, the tenant will have a claim against the landlord – for breach of the tenants’ covenant of quiet enjoyment (discussed here – scroll down).
As a landlord in this position is unlikely to be flush with cash, probably the best course of action for the tenant is to withhold the last month’s rent and deduct from this money any costs incurred by having to find somewhere else to live, removal fees and the like. Plus the difference in rent for the remainder of the term if you cannot find anywhere at the same rent.
Basically, you (the tenant) are entitled to compensation to put you in the same financial position you would have been in had the mortgage eviction not taken place.
Keep a record of the costs incurred (in particular receipts and so on) in case the landlord brings a claim for the rent arrears, so you will be able to defend easily.