Notice of disclaimer under section 315 of the insolvency act 1986

madcyclepath

Hi,

My partner and I are currently renting a house from a private landlord. Yesterday we both received a letter from the official receiver appointed for the estate of our landlord (i.e. he has become bankrupt).

The letter, entitles 'Notice of disclaimer under section 315 of the insolvency act 1986' states reads as follows:

'I, <-name of receiver->, official receiver and trustee of the above-named bankrupt's estate, disclaim all my interest in the lease of <-our address->'

I have contacted my landlord who is very friendly but often a man of few words to ask how this affected (if at all) our tenancy. He told me that it doesn't affect things at all.

I am happy to accept this as it fits with the little information I have managed to find on-line but I just wondered if anyone on here would be able to expand further on this and offer any advice on the situation.

Thanks.

Radiantsoul

Well the trustee has no interest in the property, probably because it is in negative equity and they don't want the obligations of being a landlord. I suspect that a secured creditor will be in touch shortly...

king100

madcyclepath wrote: »

Hi,

My partner and I are currently renting a house from a private landlord. Yesterday we both received a letter from the official receiver appointed for the estate of our landlord (i.e. he has become bankrupt).

The letter, entitles 'Notice of disclaimer under section 315 of the insolvency act 1986' states reads as follows:

'I, <-name of receiver->, official receiver and trustee of the above-named bankrupt's estate, disclaim all my interest in the lease of <-our address->'

I have contacted my landlord who is very friendly but often a man of few words to ask how this affected (if at all) our tenancy. He told me that it doesn't affect things at all.

I am happy to accept this as it fits with the little information I have managed to find on-line but I just wondered if anyone on here would be able to expand further on this and offer any advice on the situation.

Thanks.

Call these people

http://www.insolvencyhelpline.co.uk/index.php

madcyclepath

Radiantsoul wrote: »

Well the trustee has no interest in the property, probably because it is in negative equity and they don't want the obligations of being a landlord. I suspect that a secured creditor will be in touch shortly...

Thanks. Just as I expected really. I'm happy enough to trust that our landlord says it's fine but I really just wanted to get some confirmation that there weren't any hidden problems that we might face.

Other than the prospect of moving (which was possibly on the cards anyway at some point) we're not too worried really as our deposit is held in a secure deposit scheme so at least we should get that back if he worst comes to the worst.

G_M

I'm happy enough to trust that our landlord says it's fine but

You're what!? The LL is bankrupt. He has no assets, no cash but is (presumably) telling you to continue paying rent to him?

Well, he clearly has no vested interest in this, and is also totally trustworthy, so, yes, jst trust what he says and do as he says........

..... !!!

madcyclepath

G_M wrote: »

You're what!? The LL is bankrupt. He has no assets, no cash but is (presumably) telling you to continue paying rent to him?

Well, he clearly has no vested interest in this, and is also totally trustworthy, so, yes, jst trust what he says and do as he says........

..... !!!

I don't claim to fully understand the bankruptcy process but as the form detailed the LL's business I'm assuming that the business has gone bust and so not directly concerning the property we a letting off him. We found the flat through a letting agency who have dealt with this particular LL some time now and regarded him as much a friend as a business associate. I therefore feel that I am justified in believing what he says. I would also be nice to think that through remaining in the property we are both winning in that we have a property at a great price and he is still receiving some form of income.

DVardysShadow

G_M wrote: »

You're what!? The LL is bankrupt. He has no assets, no cash but is (presumably) telling you to continue paying rent to him?

Well, he clearly has no vested interest in this, and is also totally trustworthy, so, yes, jst trust what he says and do as he says........

..... !!!

As I understand the Official Receiver's letter, he is saying he does not want the rent.

Landlord clearly does have a vested interest. But to whom should the rent go, if not to the Landlord?

G_M

You may well be right, and I hope you are.

I'm just advocating caution since people in financial difficulties often say all sorts of things which are not strictly...... accurate. Either as a result of burying their heads in the sand or in desperation or...

But if the business is a ltd company and the LL's personal finances are not involved, and if you know that is the case, then yes, it's win/win.

DVardysShadow

G_M wrote: »

You may well be right, and I hope you are.

I'm just advocating caution since people in financial difficulties often say all sorts of things which are not strictly...... accurate. Either as a result of burying their heads in the sand or in desperation or...

But if the business is a ltd company and the LL's personal finances are not involved, and if you know that is the case, then yes, it's win/win.

I understand the caution, but I am basing my take on it on the OR's letter. If clarification is required, perhaps the OR should be consulted.

madcyclepath

DVardysShadow wrote: »

I understand the caution, but I am basing my take on it on the OR's letter. If clarification is required, perhaps the OR should be consulted.

I might just contact the OR and check the status.

And yes, I am being cautious. But at the same time I am confident that the situation should be resolved without major issue (if we have to move then so be it - this has always been a possibility anyway as mine and my partners working arrangements are likely to change over the coming months).

Thanks for all your replies anyway, you've helped settle our minds somewhat.

Cheers,

Matt.

silvercar

Just because the OR has no interest in the property, doesn't mean the mortgage lender won't have an interest.

Normally in bankruptcy, the OR takes account of the rent as part of the bankrupt's income and the amount of any repayment the bankrupt has to make assumes the bankrupt has this amount at his disposal. The OR makes no allowance for any mortgage payments that are not on the bankrupt's home as they are just considered debts. The net effect is that the bankrupt won't have enough income left to pay the mortgage on a tenanted property. If there is no equity in the property, the OR may very well declare he has no interest in it, but that doesn't mean that the mortgage has been paid and it doesn't mean the lender won't repossess.