New Buyer Inheriting Rent Arrears

theartfullodger

Under s3 Landlord & Tenant (Covenants) 1995 new landlord takes on benefits & liabilities of the old landlord...
http://www.legislation.gov.uk/ukpga/1995/30/section/3
(& that includes being responsible for deposit paid to old landlord, s21 restrictions etc etc - yet fully to be tested in court I understand)
- but, no new landlord in his right mind would "buy" and expect to sort the arrears later: He'd be better advised to buy & have it agreed any arrears are problem of old landlord...

Is the new LL certain this isn't actually a "rent act" tenancy & he is paying way, way, over the odds??

Gallows - something more to say?? Tell us the whole story, do! Don't be shy!

Gallows7

theartfullodger wrote: »

Gallows - something more to say?? Tell us the whole story, do! Don't be shy!

Haha. Thanks for the link.

G_M

Gallows7 wrote: »

Thanks. There's no question of the tenant being unreliable in this instance. The only concern is rent arrears that happened when the tenant stopped paying the old LL when she (the tenant) found out the property was in the process of being sold to a new owner. I say in the process, meaning that it had been sold but the new owner hadn't legally taken control of the property until about a month afterwards so there is about a month's rent outstanding in respect of the old LL not the new one.

Understandable. Tenant was unsure who the legal landlord was, what date the Transfer took place, so set rent aside pending official notification of new LL.

Once that is clarified, T should pay the new LL any arrears. Old LL should have sorted this temporary ;oss of rent within the sale price.

silvercar

G_M wrote:

You can only "start a new contract with tenants" if they agree. You cannot force them to sign. Of course, since the existing tenancy is periodic, if they decline to sign a new tenancy you could evict them in the standard way - S21/2 months/court.

But I fail to see what your solicior means by "start with a clean slate." A new tenancy agreement will not affect any arrears that exist(ed) under the original agreement. If the tenants remain in occupation, the original inventory will still be the relevant one. If the tenants have a history of non payment, a new tenancy will not miraculously make them reliable payers.

In what way is this a 'clean slate'?

Tenants want the security of a new fixed term AST. They have no arrears and they keep the property in good condition. It is a "clean slate" because it is a new AST with us rather than the now periodic tenancy with the old landlord. We are well aware that most things carry over including deposit and inventory.

Guest101

silvercar wrote: »

Tenants want the security of a new fixed term AST. They have no arrears and they keep the property in good condition. It is a "clean slate" because it is a new AST with us rather than the now periodic tenancy with the old landlord. We are well aware that most things carry over including deposit and inventory.

You missed of 'Some' from the start...

jjlandlord

I don't think that the new lndlord is automatically entitled tocthe arrears.
Otherwise, why wouldn't he be entitled to all the rent under the tenancy?

silvercar

Guest101 wrote: »

You missed of 'Some' from the start...

No I didn't, I was clearly referring to a specific tenant as my next sentence said "They have no arrears and they keep the property in good condition." So the comment that "Tenants want the security of a new fixed term AST" referred to these tenants. I wasn't generalising, I was being specific.

Gallows7

Still makes no sense to me that someone would buy a property knowing there were rent arrears. Besides, if you bought the property at a discount then you're better off anyway, so why bother worrying about trying to recover past rent arrears that don't really affect you as the new owner? From what I've been told, the new owner bought the property for a lot less than the asking price.

Gallows7

I think I just answered my own question. The new owner bought it with problems because he got it cheap because of the problems. So new LL is better off. Then that begs the question why bother trying to recover old LL's rent arrears?

G_M

Gallows7 wrote: »

I think I just answered my own question. The new owner bought it with problems because he got it cheap because of the problems. So new LL is better off. Then that begs the question why bother trying to recover old LL's rent arrears?

But of course he's now lumbered with an unreliable tenant, so probably best to get rid fast and re-advertise.