advice needed re getting back bond

kaz.w_2

Hi Guys
I have asked about this befor but put it on the wrong forum ... anyway long story but I will try and shorten it ...My dilema is I lent my son and his friend the bond money on rented accomadation .. through a letting agent .

My sons friend was going to pay me back when he got his next wage any way this never happened ... I didnt worry too much as they were only going to stay in the house 6 months and I was going to get the bond back then.

my son left the property after the 6 months was up and as now moved elsewhere .... on my son leaving the house the letting agents ... who were fully aware I provided the bond have asked me to sign a document saying it was ok for them to keep the bond ... I refused to sign this and asked for it back as my son no longer lived in the property ... they have refused to release the bond as is friend is still in the house .

The letting agent is saying when my sons friend leaves the property the bond will go to him it seems I have no rights over my own money
My sons friend as no intention of paying me back ..I know iv been stupid lending this money but it was all done in good faith.

Can any one advise me where I stand ...how can I get my money back thanx

Bufger

send a few bruisers round to have a chat with the friend :-)

kaz.w_2

hey im tempted lol

Bufger

well we dont know you or where you live :-p

kaz.w_2

does any one know how I can get the money back .... thanx

Jowo_2

If its a joint tenancy, then the deposit will not be refunded until all tenants leave because the agent/landlord needs to inspect it to determine if there are any deductions due. Was it a joint tenancy agreement?

Did you give this money first to your son or friend to pay to the agent? Was it required to be protected in a tenancy deposit scheme and if so, was it?

This dispute (failure to repay a sum that has been loaned) is solely between you and your son's friend and this personal arrangement has nothing to do with anyone else - look into taking him to court through the small claims court. Look at the information on how to do this on the HM court website and the Moneyclaim online site and see if its likely to have an effect or you need to chalk this down to experience.

If the agreement was that he was supposed to pay you back months ago, don't wait for him to exit the property, take action now through a 'letter before action' and keep a copy which basically says 'You owe me x lent to you at x date and if you don't pay it back in full by x date I will take you to court'. There will be templates available for this on the HM court website. You must be able to demonstrate that you've tried to resolve this and that the legal action is a last resort, hence the need to have documentary evidence such as a letter giving an ultimatum.

But are you able to prove that you lent him the money, that he received it and that he promised to pay it back? A verbal agreement is binding but as one wag once said 'its worth the money its printed on'.

kaz.w_2

Jowo wrote: »

If its a joint tenancy, then the deposit will not be refunded until all tenants leave because the agent/landlord needs to inspect it to determine if there are any deductions due. Was it a joint tenancy agreement?

Did you give this money first to your son or friend to pay to the agent? Was it required to be protected in a tenancy deposit scheme and if so, was it?

This dispute (failure to repay a sum that has been loaned) is solely between you and your son's friend and this personal arrangement has nothing to do with anyone else - look into taking him to court through the small claims court. Look at the information on how to do this on the HM court website and the Moneyclaim online site and see if its likely to have an effect or you need to chalk this down to experience.

If the agreement was that he was supposed to pay you back months ago, don't wait for him to exit the property, take action now through a 'letter before action' and keep a copy which basically says 'You owe me x lent to you at x date and if you don't pay it back in full by x date I will take you to court'. There will be templates available for this on the HM court website. You must be able to demonstrate that you've tried to resolve this and that the legal action is a last resort, hence the need to have documentary evidence such as a letter giving an ultimatum.

But are you able to prove that you lent him the money, that he received it and that he promised to pay it back? A verbal agreement is binding but as one wag once said 'its worth the money its printed on'.

It was a joint tenancy for 6 months the bond was held in a tenancy deposit scheme and I gave the money personally to the letting agent.

I know I wont get the money back if I take it to the small claims court as the young man in question states he as not got that kind of money . So I dont think it will be worth the hassle in the end.

It makes me so mad that when he eventually leaves the property ... and the property inspection is ok and his rent is up to date ... he will get my money and there is nothing I can do about it ...

That will teach me not to be so trusting in future .

Thanx .

clutton_2

when a deposit is lodged with one of the 3 deposit schemes, some of them ask "is there any other party with an interest in this deposit money" - check out which scheme was used and get your son to access it on-line and see if this is the case. If this has been registered then get your son to talk to the scheme administrators

I cannot speak for all 3 schemes but i know at least one of them does this.

Jowo_2

kaz.w wrote: »

I know I wont get the money back if I take it to the small claims court as the young man in question states he as not got that kind of money . So I dont think it will be worth the hassle in the end.

Why if its a joint tenancy is it still continuing as a joint tenancy when your son moved out? Usually when one party gives notice in a joint tenancy it applies to both, plus I think there is a risk (which you must verify as its a bit complex) that the joint tenancy continues when one party remains in the property which makes the other tenant still liable. Did the agent arrange for it to become a sole tenancy and get the remaining tenant to sign a new contract? What steps are being taken to get him to move out or is the landlord happy for the tenancy to continue?

If he's working, then he can afford it but if he's not, it would probably be a waste of time and money.

This advice applies to England and I don't have experience in this area so you'd need to check out the process if you are in scotland and verify the accuracy of my proposals.

Ending up with a CCJ for failing to pay a judgement impairs a credit record and will flag him up as a risky bet for future arrangements, including applications to become a tenant in his next property - perhaps for the small cost of the fee, you would like the world to know that he can't manage his money and be trusted?

The knowledge that he will end up with a CCJ may motivate him to comply and he can ask the court to pay back the arrears in installments. See the HM court website for the small claims court process and the Moneyclaim online site - they will have a sample 'letter before action' for you to write saying 'pay me back the sum of x owed for x reason lent on x date which you have not repaid by x date or I will take you to court'. Keep a copy.

Secondly, if he is working, and fails to pay, and you win the judgement you can arrange an attachment of earnings and get the money paid back out wages from his employer, though there are ways that dodgy tenants get around this. Do you know where he works? See the info on those websites of how to enforce a judgement.

kaz.w_2

Update...

Firstly thanx guys for the replies .... any way I have since discovered the young man in question negotiated with the letting agents and got his rent deducted when my son left the property so it did not carry on as a joint tenancy, also I have found out he told the letting agents to carry the bond over as he was paying me back in installments ... obviously a lie .

Does this make aNY difference to my rights to obtaining the bond back or will it still be the small claims court ... any advice is appreciated thanx

Jowo_2

You haven't actually answered whether or not the tenancy is now a single tenancy in that boy's sole name - yes the rent may have been reduced because there is only 1 occupant but has the contract been revised? So has a new contract been issued in the other tenant's name?

I wonder how the agent can retain your son's deposit if the joint tenancy has formally ended and his friend now has his own one? Have you checked with the tenancy deposit scheme how this situation should be handled? Or ask for advice from Shelter on your son's right to have his deposit returned now that the originally tenancy has ended.

Don't dilly-dally about the legal action - that boy might stay in the property for years. What you also have to consider is how much of his share of the deposit you will actually get back after he moves out, should he damage the property and should he even feel like paying the balance of it back to you.

Send him the 'letter before action' by recorded delivery and/or hand-delivered with a witness, keeping a copy where you say 'Pay me back in full the sum of x given to you on x date for x reason where you promised to pay me back but have not made any payment towards it or I will take you to court'. The HM Court site should have a template.

Accompany this with a copy of the claim that you draft in the Moneyclaim online site where you mention that both the LA and your son are aware of this loan and provide basic information on it (but don't submit the claim yet).

And if he doesn't pay you back on the date specified in the letter before action, submit the claim and await your court date. In the meantime, see if you can get the letting agent to confirm in writing that they are aware of this arrangement and believe that you are being paid back, such as an email or letter, which you can then use as proof of the loan and of his lies.