Why we might take action to end your lease

This section explains the action we will take if:

• you don't pay the rent due under the lease
• you don't pay the service charge due under the lease
• you fail to meet other terms (or covenants) of the lease

Whenever we can, we will take action to resolve problems so that you don't lose your home. But if this action is impossible or unsuccessful, we will have to take steps to end your lease:

• if you don't pay the rent or service charge due under the lease.
• if you miss a rent or service charge payment, we will ask you to make up the missing payment or to contact us if you are having problems in making the payment.
• if you don't contact us and you miss another payment, we will take one of the following three steps, depending on the circumstances. We will write and tell you what action we are taking.

Contacting your mortgage lenders

We will write to your mortgage lenders. They have legal interest in the property. To protect this, they may agree to pay any arrears to avoid action to repossess your home. The arrears will be added to your mortgage debt.

Mortgage lenders will not usually do this more than once or twice. They will not do it if the arrears will put the mortgage debt above a certain percentage of the likely value of the property.

Taking action through the small claims court procedure

We will apply to the local county court to try to recover the money owing to us. If we succeed the court will grant us a Money Judgement Order. If you are in paid work, we will consider asking the court for an Attachment of Earnings Order, the court will then arrange for your employer to make regular deductions from your earnings until the debt is cleared.

The Money Judgment Order against you may affect your ability to get credit in the future.

Taking court action to repossess your home

We can take court action in two different ways to repossess your home:

• taking court action to repossess your home
• taking court action for forfeiture of your lease

Both actions will mean that you will have to leave your home.