Landlord gone into receivership - As tenants should we be worried?

[Deleted User]

Hi Moneysavers

Just after a quick bit of advice please.

We live in a rented property in a block of 15 apartments that were built approx 3 years ago by a property development company. I believe a couple of apartments have been sold but the rest are rented as we do. The rent goes to the property development company through the letting agent who manages the property. As far as we are aware the letting agent is responsible for all the rented apartments in the building.

Anyway that's the background - yesterday evening people came round to put tape over the apartment doors as an occupation check and put 7 day lock change notices on the doors. The notices were were posted by a property management company different to our letting agent so we were a bit concerned. I phoned our letting agent today to advise what had happened and they informed me the notices should not have been posted and it is something they are dealing with but nothing to worry about.

We have today received a letter from a Property Consultants to advise they have been appointed as receivers by the bank and are effectively our new landlord.

Please can somebody advise whether this is anything we should worry about?

The letter advises the property development company is no longer in a position to accept rent from us and any rent we do pay will be unrecognised by the receivers. The direct debit for our rent goes to our letting agent so I presume we are ok in this respect?

I am a worrier so any advice you can provide I will be grateful.

Gem

RAS

When does the direct debit go out?

BitterAndTwisted

If the letting-agent have not been appointed by the receivers or their property consultants you should not pay your rent to them. Have you received any specific instructions about who you must pay your rent to in future?

G_M

1) stop paying rent till this is resolved. Put it to one side as you will have to pay it in due course
2) Your tenancy continues as before so - what tenancy do you have?

a) Fixed term? If so, start date and how long (6 months? 12?).
b) or (monthly) Periodic (ie your fixed term has ended)

3) your degree of security depends on 2) above, but also on whether there is a mortgage on the property and if so whether they gave permission for the tenancy

4) you cannot be evicted except by a court. Make sure you open all letters addressed to 'The Occupier' in case a court hearing scheduled.

The likely options are

A) you get confirmation that the Receivers are your new Landlords (make sure you double check this before handing over rent), your tenancy continues and you pay your rent either to them or to whoever they appoint as rental agents

the Receiver decides to sell the property to get the cash they are owed. To do this they first have to evict you, which needs a court possession order. Whether they can get a court orderdepends on your tenancy (see above)

BitterAndTwisted

Landlord gone into receivership - As tenants should we be worried? Yes and No.

Companies which go into receivership and being administered by the liquidators must act in the best interests of the creditors. This could mean chucking you out and selling the building, selling the building with you in situ or retaining the property and continuing to let all the flats until the creditors are all paid what they are owed. Or something else. Depends on how much the company owed and what prospect there is of realising the most money. None of which you have any say in or control over.

In the medium to long-term you should get saving for your onward move.

[Deleted User]

Thanks everyone for your advice.
My Fianc! is going to ring both our letting agent and the appointed receiver tomorrow. He studied law at uni, didn't persue it as a career but out of the two of this he will be the better person to give them a grilling!

BitterAndTwisted

DO NOT ACCEPT AT FACE-VALUE ANYTHING THE LETTING-AGENT HAS TO SAY ON THE PHONE! Get everything in writing.

G_M

BitterAndTwisted wrote: »

DO NOT ACCEPT AT FACE-VALUE ANYTHING THE LETTING-AGENT HAS TO SAY ON THE PHONE! Get everything in writing.

Sorry. I really need to add something to this comment:

DO NOT ACCEPT AT FACE-VALUE ANYTHING THE LETTING-AGENT HAS TO SAY ON THE PHONE! Get everything in writing from a source you can verify.