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Resedential landlord in administration

Hi,

I'm helping a friend with a difficult situation and am looking for some advice if anyone can help please.

The Ltd company she rents her home from went into administration at the end of November. She only found this out as she called the management company for a maintenance issue and was informed that they no longer manage the property as the company has gone into administration. They supplied the name of the company and would not discuss further. We have confirmed that this is correct information.

Her 6 month tenancy agreement expired in 2007 and appears to have no section to cover an ongoing month by month arrangement which I'm used to seeing when I rent houses. She has no documentation for her deposit.

The intention is to write to the administrators asking for them to confirm the situation and their intentions for the property, which I assume will be to sell it to pay the bank.

Any general advice would be appreciated. Is she likely to be given notice to leave? How much notice is required? My guess is they'll want the income until the house is sold. Should we ask for the administrators bank details for rent or does this continue to go to the original landloard company? I don't fully understand the administration process and whether or not that means they own the company, or just the assets.

Thanks

Comments

  • RAS
    RAS Posts: 36,206 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    To whom has she been paying rent since November?

    She needs to stop paying and put the rent aside until she gets formal notification from the new landlord of the arrangements to pay.

    When in 2007 did she move in?
    If you've have not made a mistake, you've made nothing
  • Guest101
    Guest101 Posts: 15,764 Forumite
    Rent gets paid to the administrators, but I would withhold rent until they get in touch.

    She would be served a s21, which is two months notice of intention if court action. She can leave, but doesn't have to, until the court orders posession. If she chooses to leave, she should get confirmation in writing that the tenancy will end upon her departure at the end of two months, or serve her own notice.

    She should not pay any rent until a new ll is named with an address in the uk.

    Which month in 2007 did she begin to rent?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Can you confirm the location of the property? Assuming it's in England or Wales then once the fixed term ended your friend automatically started a Statutory Periodic Tenancy?


    What address is given in the original TA for the serving of notices? Is it the Ltd company's address or an address c/o the management company? Your friend needs to be provided an address for the serving of notices in England or Wales otherwise she can withhold the rent.


    If the Ltd company is in administration and the property is repossessed then I imagine that eventually letters will start arriving at the property for your friend, or the occupier, telling her who the new LL is and where to pay rent, etc.
  • jjlandlord
    jjlandlord Posts: 5,099 Forumite
    I would withhold rent until the situation clarifies. I would also probably offset the deposit against the rent as there is otherwise little chance to see it again, IMHO.
  • BB1234_2
    BB1234_2 Posts: 2 Newbie
    edited 8 January 2015 at 3:18PM
    Thank you for the replies.

    Move in date was 01/09/07.
    The house is in England, if the Statutory Periodic Tenancy doesn't need specific mention to still apply then that's good.
    One payment was made in December but now she knows, Jan won't be paid.
    The contract is with the landlord Ltd company and address.

    Probably the best course of action is to put rent aside until the new landlord has been in communication and expect the s21 at some point in the future. Agree? Probably not even worth writing to them?

    She can't afford to move, especially if the deposit is gone, which makes this much more stressful.


    Thanks again
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Read:

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

    (administration is similar process to repossession)
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