Losing your home by forfeiture or repossession

In some circumstances the Council or your mortgage lender could apply to the courts for possession of your home.

Forfeiture

Forfeiture is where the Council applies to the court to end your lease because you have broken the lease conditions. This could happen if:

• you do not pay your service charges
   
• you cause nuisance and/or harassment to your neighbours
   
• you neglect or damage the property.

If the court decides that you have seriously broken the terms of your lease, it may end the lease and give us possession of your flat. You could lose your home.

Forfeiture is drastic. As a responsible landlord, we only use it when we have to, to protect the interests of the Council, its tenants and other leaseholders. With overdue service charges, we will always try to help people who have genuine money problems.

Before applying for forfeiture for unpaid service charges we would have to satisfy a Leasehold Valuation Tribunal that the charges were reasonable and the leaseholder had not tried to pay them. 

For other breaches of your lease, we would have to serve you with a notice requiring you to put matters right within a reasonable period. If you did not then comply the Council could begin court proceedings.

Repossession by a mortgage lender

If you have taken out a mortgage to buy your flat, your mortgage lender has a ‘legal charge’ on your home. This means they can apply to the courts for repossession if you do not pay your mortgage. If the court grants possession, they have the right to evict you, sell your flat and take what you owe them out of the proceeds. They must give you anything left over, unless someone else (such as the Council as your landlord) also has a legal charge on the property for money you owe them.

If you have difficulty paying your mortgage or service charges ask for help. Do not leave it until you are about to be evicted. We will always try to come to an arrangement over service charges, and mortgage lenders will always be willing to discuss terms for making mortgage payments. 

Contact our Leasehold and Home Ownership Team and ask for advice if you think you are at risk of losing your home because of unpaid service charges or a breach of your lease. You should get help from a solicitor or one of the advice agencies, such as the Citizens Advice Bureau|, if you have difficulty paying your mortgage. Do not leave it until it is too late!