Stupid Landlady Alert!

Ricky33

Hi, I wonder if anyone could help with a stupid landlady? The offender is me!

After two years in my flat, I decided to rent it out three years ago and left the country. It was a very quick decision, and I didn't know at the time that I should tell my mortgage company. When I found out, they wanted a vast amount in fees to switch mortgages, and as I didn't have the money, I didn't change. Now my tenant can't pay, and I simply don't earn enough to pay both the mortgage and my rent in my current 'home' country. One option would be to return to my flat, thereby negating the 'type of mortgage' issue, however I understand that whilst I can give my tenant notice, I remain powerless to ensure he leaves.

Needless to say, everything I have is tied up in the flat, and I do not have anything on which to fall back (living in the only place dearer than flippin' London is a killer!!)

Does anyone have any advice please? Other than 'stupid girl, investigate thoroughly before jumping into action next time!'
Thanks...

sooz

Did you use a managing agent? Do you have someone acting as an agent for you in the UK?

When did the tenancy start?

Have you renewed the contract at any time since then?

If renewed after April 07, did you protect the deposit?

N79

Please post the answer to sooz's questions.

Also please tell us:

1. The monthly rent.
2. The rent due day.
3. The amount of unpaid rent.

These are all important facts to determine if you can start guaranteed possession proceedings.

You will need to keep paying the mortgage plus court fees while you evict the tenant. Eviction normally takes around 6 months if the T does not co-operate and you do everything correct.

I hope you can cover the mortgage for the six months...

Also, you say you are living overseas. Do you have permission from HMRC to receive gross rent without tax deductions?

Please post full facts or we cannot make any suggestions.

Ricky33

Hi, thanks for your swift replies

To answer both sets of questions:

Tenancy started in August 2006
There has been no new agreement since then (original lasted 6 months)
My father is the managing agent (the Agency was atrocious, useless and costly)
The deposit is not protected, but in a separate a/c.

Monthly Rent is 725 gbp
Due date is 24th of the month
So far unpaid is only 375, however my tenant tells me that a colleague of his is taking his boss to court for money owed, so I'm guessing it's unlikely that my tenant will get any further money. However that is just a guess at this stage.

Re HMRC, I spoke to them when I first left the country, and they confirmed that they would give permission (as the mortgage is approx 300 more each month than the rent - which has not gone up since I rented it out 3 years ago). However, after encountering huge problems with their website, I neglected to complete tax returns. This I clearly need to do as a matter of urgency. I did tell you I was stupid, and believe me, I'm kicking myself to hell and back. There is nothing you call me that I haven't spent the last 24 hours yelling at myself.

Thanks again

sooz

Well, it's not as bad as I thought it would be (apart from not informing the mortgage company & not filing a tax return last year!)

Your tenant is on a periodic tenancy, so you can serve a Section 21 notice at any time - you can do this now, to expire AFTER 23rd of November.

As N79 says, the tenant doesn't have to move out, you end up going to court (section 21 is all postal now if the tenant doesn't contest it) but it still could take up to 6 months. Can you afford the mortgage plus rent in the meantime? If not, is it possible for you to move back in with your father until you regain possession of you flat?

My best advice would be to join a LL's association, who will give you all the paperwork you need, & talk you through filling it in.

Ricky33

Many, many thanks Sooz and N79 - I really appreciate your help, it's been mega-useful! Off to find my tax return now...!!! All the best )

PayDay

Does your tenant know that you didn't have permission to let from your mortgage lender/Where does your post go?

N79

I wrote this before the forums went down for maintainence and I thought I might as well post it even though Sooz has already covered the same points.
OK as regards HMRC - this issue is not connected with evicting the tenant. You will need to complete a tax return for each year (you can not file online if you are non-resident) and you will be fined hundreds of pounds (100 pound for each year you are late, plus interest plus penalties). Make sure you sort this years tax return by the end of october (the deadline for non residents to file) so that you do not incure a further fine.

If you want to evict your T your best bet is to use the Section 21 route. You need to give your T at least two month notice to end at the end of a rent period and using the correct form of words. T is now on a statutory periodic tenancy. You do not need to protect the deposit.

The S21 route is a possession only route. You will need to claim rent arrears seperately although to be honest if the T has no money then there is no point in throwing good money after bad.

Once the correctly served S21 notice expires and if the T does not vacate then you can go to court to enforce the notice (you must not do anything to evict the T yourself - this is a criminal offence). You can file a claim online and use the accelerated process provided you have a properly signed, written Tenancy agreement. Otherwise there will be a court hearing. Provided you have served notice correctly and your paperwork is in order then the court will grant you possession, normally giving the T 2 weeks to vacate although sometimes Ts can spin a good sob story and get longer.
If T still has not vacated after court order has expired then you have to get the court baliffs to evict. They will enter the property and through the T out!

I suggest you join a LL association. I recommend the NLA or RLA as they have legal helplines for members who will talk you through the paperwork you require. NLA membership is only 75 pounds a year and is tax deductable.

Good luck. Let us know if you have any questions and don't be put off if you get a few jibs from the "down with LLs" brigade on this board, who seem to take delight in LLs misfortune. you appear to realise you have been niave and I'm afraid this is going to cost you.

Ricky33

N79 once again my heartfelt thanks for your constructive and sound advice - on all apects. It is hugely appreciated )

N79

Ricky

This could get rough before it gets better. I mean it - you are looking at 6 months to get the T out during which it sounds like you will not get any rent. If your T is hoping to get a council house then they will have to stay all the way to when you call in the Baliffs. So dig in and try to remain calm and detached. Getting emotional does not help with the eviction process although I realise that it is all very distressing when it is your home!

If you do the eviction possession yourself without a lawyer (and it really is not that scary) then the process costs around 300-400 pounds. Technically you can claim this back from the T but if they have no money then I am afraid it is a bit like the outstanding rent - a waste of time and money chasing it.

Before you issue notice it is worth just checking whether you have broken any other laws as the T may use this to cause trouble in the S21 proceedings.

Does the property have gas? If it does do you possess a current LL gas safety certificate from a Corgi registered installer? If not, then you need to arrange for one today.

Do you have a LL buildings insurance policy or have you still got a residential buildings insurance policy? If you have the wrong type then I suggest that sort this out today as your house is effectively uninsured. Your mortgage company really will not like that if they find out!

Also it might be worth getting an accountant to approach HMRC when you own up to your illicit past as they may be able to negotiate a lower penalty. This will obviously cost you money up front but it could save you money if you end up with a lower penalty.

Happy to help if you have any further questions.

Ricky33

I'm expecting the worse, basically, largely due to my own niavety.

But lessons learned are good, and I'm preparing now.

I don't have the LL gas certificate - but it is safe, and covered by British Gas, and as such subject to an annual check. This also true for the electrics. It's clear from what you said this will be insufficient, I realise this.

Ditto for the buildings insurance, it's residential - I had no clue these things were LL specific.

The T is after council housing, he told me from the start that he would stay only until he received it. So the long-haul looks like it'll be my deal. I feel really bad for him, he has a child - but I simply don't earn enough to pay for both my rent and the mortgage. I'm (again, niavely) hoping T will find this whole thing to his advantage, because he may get council aid quicker. He's had major troubles paying for the last 6 months, and has paid me in several installments each month, only one on-time, the rest in arrears. This has cost me not insignificant amounts in fees etc, but he's trying, and I appreciate that - I have no wish to do him any harm or bad thing. Or indeed anyone.

I'm not aware of having broken any other laws, but I will investigate this - I'm hoping the LL societies you recommend will have some info I can swat up on.

I will sort all this out urgently - including finding an accountant for tax purposes.

I keep saying it, but thank you - I know tough times are ahead, but at least I'm 100% more clued-up than I was this morning. For that I am extremely grateful.