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Landlord going bankrupt

jgh
jgh Posts: 171 Forumite
Eighth Anniversary Combo Breaker
in House buying, renting & selling
I've been advised I may have to consider bankruptcy. My tenants have said they are worried that this means baliffs could break into their house and steal their possessions. Is this correct? Surely that's breaking & entry, followed by theft.
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Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    No, the bank then becomes the owner of the property then gives the tenant a clear 2 months notice to leave. Then if the tenants don't leave the landlord which is now the bank now has to take court action to get them evicted.

    Does the bank actually know that you do not live there?
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 15 July 2012 at 9:10PM
    HappyMJ wrote: »
    No, the bank then becomes the owner of the property then gives the tenant a clear 2 months notice to leave. Then if the tenants don't leave the landlord which is now the bank now has to take court action to get them evicted.

    Does the bank actually know that you do not live there?
    The OP does not say whether he has a mortgage. Bank may not be involved. If he goes bankrupt, the Official Receiver will take over all his assets.

    1) Is there a mortgage on the property?
    2) if so, is the mortgage a BTL mortgage, or has the lender given CTL?

    If there is no mortgage, or if any mortgage is BTL/CTL (ie the tenancy is approved by the lender) then the tenancy will continue in the normal way, but with a new landlord.

    The mortgage lender or Official Receiver will become the landlord.

    The tenants then have to rely on their tenancy - is it in a Fixed Term? If so, they are secure till that FT ends. If not (ie it is Periodic) then the new landlord could give notice in the same way that the current landlord could (see here).

    However, if there is a mortgage but NO BTL/CTL then the lender could apply for immediate possession. The tenants should attend the court hearing (they'll get a letter addressed to "The Occupier") and ask for 2 months notice in accordance with Mortgage Repossessions (Protection of Tenants etc) Act 2010
  • jgh
    jgh Posts: 171 Forumite
    Eighth Anniversary Combo Breaker
    edited 15 July 2012 at 11:01PM
    No mortgage on the tenanted property, the mortgage is on the property I occupy. The tenanted property is included in my statement of assets. The tenants seem to think baliffs go through the list of assets, break down the doors, clear out all the contents, and sell it off, or hold into it until they, the tenants, prove that the baliffs have actually gone off with somebody else's property.
  • rentergirl
    rentergirl Posts: 371 Forumite
    JGH: no. The bailiffs must not go through the tenants property. And you can avod this by keeping everyone informed. If you are going bankrupt, why not give your tenants notice now, as they will likely be move don anyway. As a coda, bailiffs are not supposed to do a lot of things, but can be out of control, in rare but bad cases.
  • GDB2222
    GDB2222 Posts: 25,643 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    business_man wrote: »
    Why don't you sell the property and do *something* with the funds?

    You're always there with your spam. Trying to prey on people who are desperate. Anything for a bit of profit.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    jgh wrote: »
    No mortgage on the tenanted property, the mortgage is on the property I occupy. The tenanted property is included in my statement of assets. The tenants seem to think baliffs go through the list of assets, break down the doors, clear out all the contents, and sell it off, or hold into it until they, the tenants, prove that the baliffs have actually gone off with somebody else's property.
    In that case ther tenancy just continues. The Official Receiver becomes the new landlord.

    as I said, he may give 2 months notice (a S21 Notice) expecially if the tenancy is Periodic (monthly).

    Bailiffs canNOT break down doors (legally at least!) or take tenants belongings, but as a precaution tell them to photocopy their tenancy agreement (and passport for ID?) and keep copies by the door to show bailiffs.

    That way they can prove they are there legitimately, and are not you!
  • jgh
    jgh Posts: 171 Forumite
    Eighth Anniversary Combo Breaker
    business_man wrote: »
    Why don't you sell the property and do *something* with the funds?
    The something I would *do* with the funds is pay off my debts - my mortgage - hopefully leaving me only £5000 or so out of pocket, but still with no income as I will have "disposed of assets in order to qualify for benefits", so thereby being disqualified for JSA, so leaving me still going backwards, but by only £130 a week instead of £165 a week.
  • vectistim
    vectistim Posts: 635 Forumite
    Part of the Furniture
    Would they really consider selling assets to pay off debts like that?
    IANAL etc.
  • Notmyrealname
    Notmyrealname Posts: 4,003 Forumite
    vectistim wrote: »
    Would they really consider selling assets to pay off debts like that?

    No they won't. If the OP goes bankrupt they'll lose the house anyway. The OR will sell it to clear the debts.
  • GDB2222
    GDB2222 Posts: 25,643 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    business_man wrote: »
    When are you looking to sell? Selling fast would mean you have enough time to concentrate on settling your existing debts and keeping the bailiffs away.

    Reported as spam.

    How can it possibly help anyone, other than you, for the OP to sell his house to you at 50-60% of its true value? It may not even help you, as the OR can unravel the transaction if he wishes.
    No reliance should be placed on the above! Absolutely none, do you hear?
This discussion has been closed.
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