Tenancy agreement help

kong12

Hi, I'm looking for some help as I don't know where to go, I have recently signed a 12 month tenancy to a private landlord to rent out a property and paid a bond of £800, I since signing the agreement have found out that a week earlier the house was going to be repossessed due to mortgage arrears, but due to a payment the arrears were reduced but will still be repossessed if payments are not met, this obviously has worried me and to be honest has completely put me off moving my family in, where do I stand regarding canceling the tenancy and getting my deposit back?? (which wasn't placed into a protection scheme) am I set to lose everything? any info or advice would be much appreciated !! thanks

Benji

I am really sorry, but if you pull out now you will be breaching the contract and the landlord could then sue you for any costs that your breach resulted in (loss of rent, re-letting fee etc etc.) In this instance you are stuck between a rock and a hard place, because it is possible that not getting your rent could result in his property being repossessed. The mortgage company could charge him considerable fees in such an instance, and as those fees had at least been partly caused by your breach, you could be liable for a percentage.

Having said that, if you do take the tenancy, new legislation last year gives tenants the opportunity to request 2 months grace from the courts after a possession order is granted. The possession process itself takes a while, so it's not as though you'd be thrown out in a matter of days.

Your deposit does not need to be in a protection scheme as it is not yet a tenancy deposit (no tenancy) so it is likely you would not get your deposit back as the landlord would use it to offset some of the costs I mentioned in my first paragraph.

kong12

Benji wrote: »

I am really sorry, but if you pull out now you will be breaching the contract and the landlord could then sue you for any costs that your breach resulted in (loss of rent, re-letting fee etc etc.) In this instance you are stuck between a rock and a hard place, because it is possible that not getting your rent could result in his property being repossessed. The mortgage company could charge him considerable fees in such an instance, and as those fees had at least been partly caused by your breach, you could be liable for a percentage.

Having said that, if you do take the tenancy, new legislation last year gives tenants the opportunity to request 2 months grace from the courts after a possession order is granted. The possession process itself takes a while, so it's not as though you'd be thrown out in a matter of days.

Your deposit does not need to be in a protection scheme as it is not yet a tenancy deposit (no tenancy) so it is likely you would not get your deposit back as the landlord would use it to offset some of the costs I mentioned in my first paragraph.

Hi Benji thanks for the reply, surely the tenancy agreement is not forceable due to the fact the house is being threatened with repossession as I remember reading that a landlord must have permission from the mortgage company if it's been let out, and as for the deposit it is a tenancy deposit as I have signed a tenancy agreement, let me know what you think thank again.

may_fair

kong12 wrote: »

I remember reading that a landlord must have permission from the mortgage company if it's been let out

This has no effect on the validity of the contract between you and LL.

may_fair

Benji wrote: »

Your deposit does not need to be in a protection scheme as it is not yet a tenancy deposit (no tenancy)

I think it is:

Section 212(8) HA2004

“tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for—
(a) the performance of any obligations of the tenant, or
(b) the discharge of any liability of his, arising under or in connection with the tenancy.

And
Section 213(1)
(1) Any tenancy deposit paid to a person in connection with a shorthold tenancy must, as from the time when it is received, be dealt with in accordance with an authorised scheme.

kong12

may_fair wrote: »

I think it is:

Section 212(8) HA2004

“tenancy deposit”, in relation to a shorthold tenancy, means any money intended to be held (by the landlord or otherwise) as security for—
(a) the performance of any obligations of the tenant, or
(b) the discharge of any liability of his, arising under or in connection with the tenancy.

And
Section 213(1)
(1) Any tenancy deposit paid to a person in connection with a shorthold tenancy must, as from the time when it is received, be dealt with in accordance with an authorised scheme.

thanks for the info, but by the look of things it's win win for the landord I have now got to pay another months rent where I currently am as the house I'm supposed to be moving into still has some of the previous tenants property inside which the landlord promised me would me removed even if I did want to move in!

may_fair

kong12 wrote: »

thanks for the info, but by the look of things it's win win for the landord I have now got to pay another months rent where I currently am as the house I'm supposed to be moving into still has some of the previous tenants property inside which the landlord promised me would me removed even if I did want to move in!

So you're saying you've signed a contract, with a fixed term commencing [X date] and LL is saying you cannot move in on this date? If so, then LL is in breach of contract; you could probably use this to your advantage. Please clarify.

kong12

may_fair wrote: »

So you're saying you've signed a contract, with a fixed term commencing [X date] and LL is saying you cannot move in on this date? If so, then LL is in breach of contract; you could probably use this to your advantage. Please clarify.

There is no actual date on the contract the moving in date was verbally agreed

may_fair

kong12 wrote: »

There is no actual date on the contract the moving in date was verbally agreed

Well, he's not sticking to this verbal agreement, so he's broken the terms of the contract.

LL can't agree that the term will start on 10th January, but then say you can't move in then, it has to be on 15th March or 5th August. You can't be bound to a variable move in date unilaterally dictated by one party to the contract.

In the circumstances, I think it'd be worth paying for half an hour of a solicitor's time (a solicitor specialist in landlord & tenant law) to knock this on the head.

Try this find-a-specialist-solicitor website if you're not sure where to find one: http://www.contactlaw.co.uk/

Hump

Sounds like the mortgage company may have secured a suspended possession order which means they won't get possession whilst the landlord pays the mortgage plus a 'bit off the arrears'. I wonder whether the landlord has the consent of the mortgage company to rent the property out. The landlord would probably not want you to contact the mortgage company with a copy of your tenancy agreement

However if you ever get any correspondance addressed to 'the occupier' then open it and read it - then act on it.

kong12

thanks mayfair I think this may be the next step,

Hump- thanks for the idea, I really don't think he will have permission to rent it out, which mortgage company would allow a ll to rent out when there is a suspended possession act placed on the property,

I would be happy to move in if it weren't for this, obviously I wouldn't move me and my family from a secure home we've rented for the past 3 years to somewhere which could be repossessed god knows when.