Tenant of repossessed property told not to pay rent by agent then told to make immedi

tiredjan

(This is a bit long to read but wanted to provide as muchbackground information so you know the story)



I moved in to my current property in September 2013 andsigned a year’s tenancy agreement with the LA

.

I am a single parent with two young children and for thefirst month of living in the property I had no hot water, heating or electricityin parts of the house. However I continued to pay the rent on time and justkept trying to follow up with them.





On the 17th December 2013 I was informed by my LAthat the landlord was struggling to pay her mortgage and was in trouble withthe bank, but not to worry as this wouldn’t be until the end of January andthey are trying to sell the property before hand, therefore leaving me as asitting tenant.



I allowed the LA to show prospective people around theproperty over the Christmas period, and was told that someone was interestedand would also keep me on as a tenant, so long as the sale would be completedbefore the end of January.



Thinking I would still be at the property I paid £1300 ( a month’srent) on the 2nd of January. A few days later I done a clear up andcame across an unopened letter addressed to ‘tenant or occupier’. As a newtenant I received so much spam mail sent to tenant or occupier that I stoppedopening them. I opened this one before throwing it away, to find that thelandlord had already been taking to court and the bank had obtained a courtorder to repossess the house in two days’ time.



As you can imagine my head was all over the place, I calledthe solicitors who said they may be able to give me an extension if I send oversome documents which I did straight away. I then called the agents, who knew(or seemed not to know) nothing about it, when I asked to have my rent back as Ihad just paid a big amount for the month, they told me that they have alreadygiven the landlord the money and can’t get it back. However they are trying toget an extension from the bank so that the property can be sold in time, and ifthis was to happen I shouldn’t pay Februarys rent and any further rent until I amtold so.



The day of the eviction I had to take time off work and hirea removal van, the solicitors then called me to let me know they will give me a2 month extension.

I then received a call in the last week of January from theLA saying that the property had been sold, that I would be able to sign my new tenancy agreement on the 11thFebruary and if I could let the landlord come to collect a few of herbelongings she left behind.



February arrived and I am now being chased by the LA for therent I was told not to pay.



I questioned why they was calling as I was told by them notto pay February and also that the property has now been sold, so I was confusedas to why I was paying the landlord money when she no longer owned theproperty.



I was the told that the property has not been sold and that itwould be sold end of February, which was then changed to a 50 / 50 chance itwill be sold the first week in March.



They also went on to say that I should never of been toldthis and will have to make immediate payments.



I have made them fully aware that I cannot afford to pay asa my monthly income was low due to removal fees and time off work.



I emailed letting them know I get paid at the end of Februaryand I can give them a payment towards the rent and then pay it off if mytenancy continues, if not I would make a full payment on the day of my eviction,as I wouldn’t have March’s rent to pay, and being placed in emergency accommodationby my local council. They have not accepted my offer of payments and aredemanding payment immediately.



I have written evidence of them telling me not to pay thismonth and all other conversations; I would consider taking them to court if I had a case?



If not I want to know where I stand legally?

marliepanda

Either your have a contract with your landlord, or that contract passes to the new owners, aka the bank if it is repossessed.

It does not mean you don't have to pay rent.

By your own admission they said 'don't pay februarys rent until you are told to do so' Probably so it didnt go to the wrong person and they could make sure it was appropriated correctly.

I am sure they didnt say 'don't pay and never pay for February.

Regardless of your income, you signed up to pay that rent and you should have kept that money aside, not spent it.

dodger1

When the LL of the flat I was renting stopped paying the mortgage I received a letter addressed to the occupier from the mortgage lender telling me to stop all payments to the LL and to forward all future payments to their agents until the property was sold.

I'd guess you received something similar at some point but unfortunately threw it away. I'd ask the agents who they are collecting the money for, if it's the old LL don't pay it and get in touch with the lender direct.

JencParker

While you do owe the rent, you do seem to have incurred unnecessary expenses (removal fees etc) due to either them giving you the wrong information or your misunderstanding of the matter. I would be very careful of believing what the estate agents tell you and you need to sort out exactly what your legal position is.

Firstly, who advised you that there was an eviction? As far as I'm aware, if you are a tenant with a valid contract, the bank just becomes your landlord (and for that reason it is a good idea to hold rent until that is established), so there should have been no eviction? As this has caused you unnecessary expense which has affected your ability to pay your rent, then I would pursue this.

anselld

You will ultimately have to pay rent for all the time you are living there so keep it to one side.

However, if the property has been repossessed the LL is no longer your LL and the LA is not necessarily representing the new LL (i.e. the bank). You should wait until you are served the correct notice by the new LL on who to pay rent to.

If the property has not yet been repossessed then pay rent as normal.

Either way your tenancy continues until you receive an eviction notice from the courts.

You are not required to sign a new tenancy agreement if the property is sold. Your tenancy would continue with the new Landlord (with or without the agent).

franklee

Are you in England and Wales? If so read shelter's page Repossession by a landlord's lender
http://england.shelter.org.uk/get_advice/repossession/repossession_by_a_landlords_lender

The first thing you need to establish is did the landlord's mortgage lender consent to the tenancy? So is it a residential mortgage with consent to let or a buy to let mortgage? If it's a residential mortgage without consent to let you have less rights.

Write to the letting agent and ask if they checked by seeing WRITTEN PROOF the lender had agreed to the tenancy. I would suspect not given the speed of the possible repossession so soon after your tenancy started.

You need to establish what is happening with the repossession, this guide is helpful especially if there was no consent to let:
Mortgage Repossessions (Protection of Tenants etc) Act 2010: guidance
https://www.gov.uk/government/publications/mortgage-repossessions-protection-of-tenants-etc-act-2010-guidance
"This guidance aims to inform lenders, landlords and tenants of their rights and responsibilities under the Mortgage Repossessions (Protection of Tenants etc) Act 2010, which aims to provide a level of protection to tenants whose landlords have let their mortgaged property without the knowledge or consent of the lender if their landlord (the mortgage-holder) falls into arrears on their mortgage payments and the lender commences repossession proceedings."

Until it's clear what's happening put the rent aside - you will still owe the rent but you must pay it to the correct party. Suggest you write to the agent informing them that's your plan.

Once you've read the background information above I'd suggest you get on the phone to Shelter for detailed help for your particular circumstances.

I'd suggest you claim against the landlord for the costs of the aborted move. I'd put that in writing to the agent too.

Do read all letters to the occupier.

Unless there is a break clause in the tenancy agreement you can use if there is no repossession you will owe rent till September 2014 so do not move out until you are clear the repossession is going ahead. If a new landlord buys the property do not sign a new tenancy agreement as the old one can just carry on.

G_M

Repossession (What happens if a landlord's mortgage lender repossesses the property?)

Audrey_Wright

Sadly, from what I've read "shouldn’t pay Februarys rent and any further rent until I am told so" comes from the fact that you have paid a full month's rent to your initial landlord right before she got the property repossessed.
So she got a month's rent for something she doesn't own any more, or at least not for a whole month.
That is why the agent told you to postpone your payment until the time the proper recipient of it is settled. This was to prevent you from paying to wrong person.
However, "until your told to do so" states that in some time, you will be asked to pay that same amount of money.
What you should have done was hold the rent money to the side and wait to see what happens. You either pay what you originally owed, or get a free 1300 pounds, without worrying if they will want it back.
There is no point in stomping over you, as I do feel for you and it was just a big misunderstanding.
However, you do have some right in here. You were mislead by whoever it was that you're being evicted, which called for you to arrange extensive expenses and furthermore lower your income for the month (you took time from work).
This is reason for you to look for a compromise with the agency / bank / landlord and is a pretty solid argument to receive at least an extension to your payment deadline.
On the other hand, this is also on the mercy of them agreeing and taking a bit of compassion into the case.
In reality, you weren't obliged to make all those expenses. For instance, a relative of your, owning a moving van, could have done the moving for you, without you paying and without taking time from work. That said, you have options before you that don't require payment and thus, your choice of paying and taking time from work is your own and not forced by somebody else.
Should all fail, and they indeed request immediate payment, I suggest you take a loan from somebody you trust and handling the issue, seeing as you only need time to receive your salary.
I hope you dodge the bullet this time, but take it as a note, to be prepared. Good luck

Annabee

Er, not everyone has a relative with a van! A bit of a big assumption to make.