what happens to tenants (and rent) when landlord dies

apollocvermouth

My father who recently passed away had a buy-to-let property with tenants currently on an AST, but passed the first 6 month and now on a month by month contract.

As the executor to the will, I'm about to apply for probate. However in the mean time, I am struggling to understand what happens with the tenants and their tenancy.

A complication arises in that the rent was being paid into a joint account with his parter (but not spouse) and as I understand, that account can now be changed solely into the partner's name.

So do the tenants continue to pay rent? and if so it will go into that account which will no longer be my father's account. I am unsure if this money belongs to 'the estate', and without the grant of probate I seem to be in no position to ask that money to be paid somewhere else or to change the tenants contract.

Any advice greatly appreciated.

dzug1

The rent belongs to the estate, but getting your hands on it before probate is a problem, probably insoluble


Is the partner likely to prove difficult about handing it (ie the rent due after death) over in due course?

apollocvermouth

I fear that she might, as she will now need to find extra money to pay for her own rented accommodation. Even though she will get her share of the estate, as stated in the will, once it is all sorted.

It's a difficult situation in which I am not sure how to proceed.

getmore4less

your right to deal with this comes from the will

you can tell the tenant they should not pay the rent to that account.

there are better board for this the renting one and the landlord zone.

you have become a landlord and there are things you need to learn quickly.

apollocvermouth

But that's the predicament, as I am not the landlord until I have the grant of probate? I don't know what the law is in regards to this kind of 'interim period' where there is no one who has any right to change anything.

Mojisola

Keep a record of the half of the rent due to the estate.

Give her the option of paying that amount to the estate - it will be a debt owed to the estate - or of having that amount deducted from her inheritance.

apollocvermouth

Mojisola - the mortgage was in my dads name only, so surely the whole of the rent goes to the estate?

Mojisola

apollocvermouth wrote: »

Mojisola - the mortgage was in my dads name only, so surely the whole of the rent goes to the estate?

In that case, yes.

nom_de_plume

Is there any mention of the property in the will? If the property has been left to someone(s) specifically, my understanding is that they benefit from the rental income from the date of death and it is separate from the estate. Whether that would apply if the will stated a share in the sale proceeds is probably a different matter.

You may be best advised to 'invest' £100 or so for a bit of legal advice. It will be reclaimable as an executor's expense. That will both give you the comfort of a legal opinion and a safety net against any comeback from disgruntled beneficiaries.

If the property

apollocvermouth

nom_de_plume wrote: »

Is there any mention of the property in the will? If the property has been left to someone(s) specifically, my understanding is that they benefit from the rental income from the date of death and it is separate from the estate. Whether that would apply if the will stated a share in the sale proceeds is probably a different matter.

You may be best advised to 'invest' £100 or so for a bit of legal advice. It will be reclaimable as an executor's expense. That will both give you the comfort of a legal opinion and a safety net against any comeback from disgruntled beneficiaries.

If the property

Yes the will states 'I give all my property...unto my executors' but goes on to state about dividing the remainder of the estate and there are a few beneficiaries with different shares.

You are right about getting legal advice as the next step.

John_Pierpoint

There is nothing to stop you opening an account as "The personal representative of XYZ deceased" on the basis that you can pay in but not draw out until you have grant of probate.
Legally you are already the executor.
However if I were your tenant I would get cute and suggest that I could not make out such a cheque until you had proved to me your status by producing your grant of probate.

Tenants stopped paying rent when Lucan disappeared in 1974, arguing they should not have to pay to an absent landlord.

http://en.wikipedia.org/wiki/John_Bingham,_7th_Earl_of_Lucan

There are some organisations , such as BT and life insurance companies, who will create such cheques against a copy of the not yet "proved" will and the death certificate. You need somewhere to put such cheques.
Dividend payments might well be payable into the deceased's existing account.

Who gets the buy to let property ?