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Why would you ever use this kind of notice instead of a section 21?

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http://www.legislation.gov.uk/ukpga/1988/50/schedule/2

I'd never even heard of this notice, but was discussing rental with a colleague today who is also a landlord and who said that his mortgage company insist that he serves one covering both grounds 1 & 2 of schedule 2 before a tenancy starts. Why would they do this, by which I mean what does it achieve that the more commonly understood section 21 would not?

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