Ground 2 Mortgage Notice

A ground 2 notice notifies a tenant before a tenancy is granted that the rented property is subject to a mortgage and that the mortgage company may seek possession in the future.

If you use Tenancy Builder to create the assured shorthold tenancy agreement, this notice is not required as all the grounds under Schedule 2 are incorporated automatically, including Ground 2.  

Many buy-to-let mortgage companies will insist on this ground 2 schedule 2 notice, which, if being served, must be done before an assured or assured shorthold tenancy commences.

The full text of the ground 2 Housing Act 1988 is available here.