Mr and Mrs McDonald had bought a property which had been funded by a mortgage from Capital Homes Ltd. The mortgage terms stated that, among-st other things, the property was not to be let to family members or a tenant in the receipt of benefits.
The short hold tenant, Miss McDonald, was Mr and Mrs McDonald’s daughter and suffered from a mental disorder. The parents had bought this house as a mean to provide their child with suitable accommodation.
Upon becoming aware the breach of these two terms of the mortgage, Capital Homes Ltd exercised their power to appoint receivers under the mortgage who went on to serve notice under section 21 of the Housing Act 1988. Click here for more details..
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