Renting - Letter from LPA Receivers

iamstacie · 12 July 2008 at 4:34PM

Hi,

We've received a letter this morning from a solicitors office saying they've been re-instructed to act on behalf of the lender on a property we rent, and that all rent should be paid to the LA (who know nothing about this) rather than the LL. My rent is due tomorrow, and its showing as having left my account already so I cant do anything this month, but I have cancelled the SO going forward. It does state "failure to acknowledge our interest in the property, and to cooperate in terms of inspection, paying the rent and provision of documents may lead us to issue possession proceedings" so I presume this means we're in no immediate danger of being kicked out?

My question is, where do we stand? What can we expect? Is there anything we can do?

Many thanks in advance,
Stacie

(Does anyone have a nice 3 bed house in Manchester/Stockport area to rent?

)

Premier_2 · 12 July 2008 at 6:11PM

Assuming the solicitors letter is genuine, which you need to satisfy yourself of first and foremost, consider it a temporary reprieve.

It sounds like the LL has failed to keep up repayments on the mortgage. In the current difficult housing climate, the lender has obviously decided that there is more chance of them recovering some of their money through the existing rental agreement, rather than to apply for possession and try and sell the property. That could take months in the present climate, unless they let it go for a pittance which may not cover the outstanding loan.

How long the lender is prepared to do this for is anyones guess. It depends on how much rent you are paying compared to the monthly amount owed to the lender, and also to an extent by market conditions.

If you are not in any fixed term (or perhaps even if you are because it doesn't protect you should the lender want to repossess the property) then I would suggest you start looking for somewhere else. It's better to move when you want to, by giving notice once you've found somewhere else to go, rather than be told when to leave by the court when the lender decides they want to repossess.

Let the solicitor know you acknowledge their request, will act in accordance with it in future, but explain the issue about the rent already having been paid for this month.

iamstacie · 12 July 2008 at 6:39PM

Thanks for this. I'm fairly sure the solicitors letter is genuine, we've had one from them before, a few days after we'd moved in saying the lenders had instructed them the pass control back to the LL. I'm aware the LL had experienced problems with the previous tenant, with them not paying rent for months, we've had a bailiff turn up, and a month on we're still getting 'red letters' for them every day. It might just be that the LL will start paying again once he starts receiving my rent, but since I've been instructed not to pay him, I'm not sure how this would work out?

Where would we stand just giving a months notice and leaving? My AST is for 6 months, would I be expected to pay for 6 months? I'm not trying to escape my contract, but also, I don't want to spend the next 6 months just waiting to move again and not feeling secure.

I

Renting!!:rolleyes:

Debt_Free_Chick · 13 July 2008 at 5:47AM

iamstacie wrote: »

Where would we stand just giving a months notice and leaving? My AST is for 6 months, would I be expected to pay for 6 months? I'm not trying to escape my contract, but also, I don't want to spend the next 6 months just waiting to move again and not feeling secure.

When did the AST start? And what's the rent day, in the contract?

poppysarah · 13 July 2008 at 9:27AM

I'd be looking towards leaving anyway if this was going on - you have my sympathy for the stress this will be causing you.

Their letter not coming in time for this payment to be stopped isn't your fault. You could write and tell them you have changed it now but explain their letter didn't get you in time.

Premier_2 · 13 July 2008 at 10:55AM

iamstacie wrote: »

...Where would we stand just giving a months notice and leaving? My AST is for 6 months, would I be expected to pay for 6 months? I'm not trying to escape my contract, but also, I don't want to spend the next 6 months just waiting to move again and not feeling secure.

I Renting!!:rolleyes:

Unfortunately, as you're still within the initial fixed period, you cannot end the TA yourself before this date (unlike a lender seeking re-possession who could once necessary court approval is given)

Fortunately, since the lender is currently happy for you to stay as long as you pay the rent to them, the chances are by the time they change their mind, go to court, get a possession order, give you notice to leave, etc it'll probably be the end of the fixed period anyway.

If I was in your situation, I would look to move asap after the fixed term expires.

Generali · 13 July 2008 at 12:43PM

I'd definitely be looking to get out of there as soon as the 6 months is up.

iamstacie · 13 July 2008 at 3:34PM

Debt_Free_Chick wrote: »

When did the AST start? And what's the rent day, in the contract?

It started 13th June, rent is due 13th day each month.

Thanks for all the advice, I'm hoping to speak to the solicitors tomorrow and see if they want us to stay til mid-December when our contract ends, though I'm half hoping the £650 rent we pay won't cover the mortgage so they'll ask us to leave sooner rather than later.

clutton_2 · 13 July 2008 at 4:41PM

irespective of some of the advice given here - the mortgage legal contract between owner and lender takes precedence over the AST contract between owner and tenant - if i were you i would look for somewhere to live very quickly - the Lender will not want to force you to keep to the remaining term of the AST - as they can get a better price and a faster sale for the house without an incumbent tenant. Under repossession circumstances, lenders have a duty get the highest possible price for the property to leave the lowest debt possible for the seller.

Leave as soon as you can - the odds are you will have to leave anyway and a court will probably give you no more than 28 days notice to leave when the Lender goes to court.

iamstacie · 14 July 2008 at 6:45AM

Thanks for all your advice so far, and sorry, but I have more questions. Namely what do I need to ask the solicitor when I speak with him today?

So far I have...

Is this definite, or will they pass control back to the LL again?
Will our contract be honoured for the full 6 months?
Can we leave at any point during the contract and not incur charges?
How much would they potentially be looking to sell it for?

Any other ideas greatly appreciated.

Thanks in advance,
Stacie