Use Ground 2 when your lender needs to repossess. Show the tribunal the lender's requirement.
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Ground 2 applies when your mortgage lender (or former owner's lender) requires possession to exercise their power of sale. This is mandatory if you gave the tenant written notice before the tenancy that Ground 2 might be used. From May 2026, you must provide evidence from the lender that they are exercising their right to possession. The tribunal must grant possession if the lender requires it and you gave proper pre-tenancy notice. Notice period is 2 months.
Written notice given before tenancy started (stating Ground 2 may be used)
Signed tenancy agreement showing the Ground 2 warning
Letter from mortgage lender requiring possession
Proof lender has power of sale under mortgage terms
Notice of seeking possession (minimum 2 months)
Mortgage agreement showing lender's rights
Why this matters: Missing or incomplete evidence can lead to case dismissal, costing months of unpaid rent and legal fees. Tribunals require clear, organized documentation that proves all requirements are met.
8 weeks
Minimum required
Section 8 Notice
Notice of Seeking Possession
Hand delivered or first-class post
Proof of service required
Use Locastica to gather and organize the evidence typically needed for Ground 2: Mortgage Repossession:
All information is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for specific legal guidance.
Ground 2 is a mandatory possession ground used when your mortgage lender requires possession to sell the property (usually due to mortgage arrears). You must have given written notice before the tenancy started that Ground 2 might be used. If the lender requires possession and you gave proper notice, the tribunal must grant it.
No. Ground 2 only applies when the mortgage lender is requiring possession, typically because you are in mortgage arrears and they want to repossess and sell. If you simply want to sell, you'll need to use a different ground or wait for a break clause.
You cannot use Ground 2 without the pre-tenancy notice. The notice must be in writing before or at the start of the tenancy. If you didn't give it, you'll need to use a discretionary ground or negotiate with your lender and tenant.
You must give at least 2 months' notice to the tenant before applying for possession. This applies even though Ground 2 is mandatory. The notice period gives tenants time to find alternative accommodation.
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