Keeping you safe
Templeton LPA acts to completely support tenants who comply with the terms of their tenancy agreements. The receivership process allows lawful tenants to remain in their home under professional management of the lender’s security. This avoids the risks associated with vacant property and encourages the beneficial use of valuable assets for all parties; the lenders, borrowers and tenants.
We are frequently asked the following questions from tenants when a property is taken into receivership:
I have received a letter from Templeton LPA – why?
When Templeton LPA is appointed as the receiver we will write to the tenants, enclosing a copy of the Deed of Appointment. This confirms that the lender has appointed David Burgess BSc FRICS or Ray Hugill to act as Receivers of the property. The Receiver thereby takes over control and management of the property from the borrower.
Why receivership and not repossession?
We actively seek to keep good tenants in the property and, where properties are vacant we usually seek to find new tenants. We, therefore, seek to reassure tenants that their tenancy agreement will be respected. Templeton LPA does not repossess properties. Our primary goal is to make the best of the property by maximising its income potential.
What will happen to the tenancy?
The tenant will need to contact Templeton LPA to confirm the tenancy details, including the type of property, how much the rent is, to whom is it paid to and how long the tenants have lived at the property. We ask that the tenant sends us a copy of the tenancy agreement, together with proof of last rent payment made. We instruct an agent to manage the property on our behalf. The managing agent will collect the rent and deal with any maintenance or management issues that may arise. In the meantime, the tenant is asked to put the rent to one side, as it will be requested once the managing agent is instructed. If the tenant is paying the landlord by direct debit, then this will need to be cancelled. If the tenant is paying an existing management agent, our appointed agents will confirm whether this needs to be cancelled.
If there is a tenancy agreement in place, the tenancy terms will remain unaltered for the duration of the agreement. The Receivers will act as the landlord with day to day management being undertaken by an appointed managing agent.
What happens with deposits?
That will depend upon to whom the deposit was paid. If the deposit was paid to the Deposit Protection Scheme then it should be safe. Where possible, we try to honour the deposit, subject to appropriate supporting documentation.
What about Housing Benefit payments?
A tenant who is in receipt of housing benefit payments will need to contact their Local Authority to notify them of the change of circumstances. Usually they will need to provide a copy of our letter and Deed of Appointment. Our nominated managing agent will contact the Housing Benefit department in due course.
What if the landlord has not renewed the tenancy agreement?
If the tenancy agreement has expired the tenant will occupy under what is termed a ‘periodic tenancy’; essentially under similar terms to the original tenancy. Usually, the Receivers will ask the managing agent to agree a new tenancy.
Who is responsible for ongoing problems/issues at the property?
The managing agent appointed by the Receivers will deal with any maintenance issues and we ask that they are contacted directly if any issues arise.
What happens with the landlord/borrower?
The borrower is no longer entitled to any rental income from the property. The tenant should not pay any further monies to the borrower unless the Receivers confirm that the control of the property has been returned to the borrower and that the Receivers have been asked to stand down by the lender.