Landlord (private) has gone bankrupt, who owns?

TonyWanKenobi

Hi, we recently found out that our landlord was declared bankrupt February last year. After speaking to the bailiffs we received a bankruptcy number which confirms the date on the government website and also gives an end/resolvency date of Februray this year. A recent copy of the deeds from the landregistry shows the sole owner to be the landlord and also shows the date of bankruptcy put against the property.
As there is a conflict of interests from both sides, who technically owns the Property? Is it the current landlords unless he doesnt resolve the bankruptcy at the end of Feb 2016. Or does it belong to the company that the bankruptcy was given by? As far as I can see the landlord has sole ownership of the property (no mortgage).
As we sort of know the landlord, we have been living there 'on a handshake' and just pay the bills. Is it now possible for the bailiffs/debtors to now charge us rent if it turns out they do own it until the banruptcy is cleared?
From the landlords perspective the debt will be settled, bankruptcy was issued as he ignored the statutory demand as opposed to having no money.
Sorry for any confusion.

silvercar

Maybe post on the bankruptcy board?

I would have thought that the Official Receiver that is handling the bankruptcy would be a good place for you to start. I wonder if the landlord has declared this property as one he lets out? Different rules apply to a property that the bankrupt lives in to one he rents out.

If he has been totally honest with the Official Receiver, the OR will take over as a caretaker landlord in the short term. They may pass the role on to an insolvency practitioner.

Normally you would have been given notice soon after the bankruptcy that you should be paying rent going forward to the OR. But if there is no rent to pay, then this may have slipped by. Have there been any maintenance issues, inspections, gas safety certificate etc since the date of bankruptcy?

You can't be charged rent without that being agreed in advance. You can be given notice to leave.

If the landlord is going to settle the bankruptcy, he is taking his time about it! The costs of settling will be greater than the existing debt. I am surprised he hasn't sorted this quickly. I suspect there is more going on than you are aware of. When one creditor has forced bankruptcy, all the others will appear and need dealing with.

Guest101

TonyWanKenobi wrote: »

Hi, we recently found out that our landlord was declared bankrupt February last year. - The receiver should've written to you. After speaking to the bailiffs - why were there bailiffs?? if he's bankrupt there's no reason for bailiffs to be involved at all. we received a bankruptcy number which confirms the date on the government website and also gives an end/resolvency date of Februray this year. A recent copy of the deeds from the landregistry shows the sole owner to be the landlord and also shows the date of bankruptcy put against the property.
As there is a conflict of interests from both sides, - How so?? who technically owns the Property? - the LL continues to own the property, however the rent should be paid elsewhere. Is it the current landlords unless he doesnt resolve the bankruptcy at the end of Feb 2016. Or does it belong to the company that the bankruptcy was given by? - definitely not. As far as I can see the landlord has sole ownership of the property (no mortgage). - Mortgage is irrelevant
As we sort of know the landlord, we have been living there 'on a handshake' and just pay the bills. - so you don't pay any rent? Is it now possible for the bailiffs/debtors to now charge us rent - No. if it turns out they do own it until the banruptcy is cleared?
From the landlords perspective the debt will be settled, bankruptcy was issued as he ignored the statutory demand as opposed to having no money.
Sorry for any confusion.

Until you hear from the person or company who's dealing with the bankruptcy you have nothing to worry about really.


Since it seems you don't pay any rent, I'm not sure why the LL rented to you, but that might explain the bankruptcy.


to be technical, now he's bankrupt, he by definition has no money.

TonyWanKenobi

Silvercar, guest 101. thankyou for your response. As you said I think there is more going on than we know. We only knew about this when the bailiff for the creditor came to the property last week, my guess is they did not know anyone was living there.
With regards to gas safety etc. the house itself would probably not be seen as 'rentable' by a letting agent as there is no central heating. There are also other issues such as property (including cars) which are being stored there. Due to the cost of sorting all this out he can only really ask people he knows to live there. The benefit for him is that we have heating on (electric) which prevents mould and probably other issues if it was vacant.

With regards to settling the bankruptcy, there is a proposed end date on the official listing. As you said most people would probably try and sort this out earlier but some like to leave it till the last minute.

So even though his name is still on the title and the house hasnt been forclosed yet, If the OR decides that we need to pay them rent or leave, they are within their right to do this?

Thanks

Guest101

TonyWanKenobi wrote: »

Silvercar, guest 101. thankyou for your response. As you said I think there is more going on than we know. We only knew about this when the bailiff for the creditor came to the property last week, my guess is they did not know anyone was living there.
With regards to gas safety etc. the house itself would probably not be seen as 'rentable' by a letting agent as there is no central heating. There are also other issues such as property (including cars) which are being stored there. Due to the cost of sorting all this out he can only really ask people he knows to live there. The benefit for him is that we have heating on (electric) which prevents mould and probably other issues if it was vacant.

With regards to settling the bankruptcy, there is a proposed end date on the official listing. As you said most people would probably try and sort this out earlier but some like to leave it till the last minute.

So even though his name is still on the title and the house hasnt been forclosed yet, If the OR decides that we need to pay them rent or leave, they are within their right to do this?

Thanks

The property needs to be habitable, that's just the law. (including a source of heating!)


The property cannot be 'foreclosed' as there is no mortgage (and it is an Americanism), the property can either be 1: sold to clear debts or 2: a charge be placed on it, to be paid when it is sold.


No the OR cannot just change your contract. However they could, legally, evict you yes. Just like any other landlord could. (however you've only been there a few months and have a 30 month tenancy don't you.....???!!! <hint hint>)

agrinnall

I'm not sure whether you currently have a tenancy at all, if no rent is being paid then aren't you there just as a guest / house-sitter? If so then I'd see your position as rather precarious, you could be thrown out with little notice (possibly none).

Guest101

agrinnall wrote: »

I'm not sure whether you currently have a tenancy at all, if no rent is being paid then aren't you there just as a guest / house-sitter? If so then I'd see your position as rather precarious, you could be thrown out with little notice (possibly none).

Rent can be charged 'in kind', it does not need a specific monetary value.

TonyWanKenobi

Sorry for terminology this is relatively new to me but hopefully you know what I mean.
I believe he did say about a charge being put on the property, I presume if they are happy with this the case will resolve at the specified date?
From our point of view, the OR is essentialy the landlord so from this point onward they might not charge rent but could give us a notice to leave? Also, does the original landlord / owner have any power to evict us until he has sorted out the bankruptcy?

Thanks

G_M

* Repossession: what if a LL's mortgage lender repossesses the property?
(applies to bankrupcy too).

As we sort of know the landlord, we have been living there 'on a handshake' and just pay the bills.

Is this s recent agreement since the bankrupcy, or was this the arrangement from the start? Have you ever paid rent?

On what basis dd you move in? As tenants, paying rent, or as friends, house-sitting & contrubuting to bills?

Guest101

TonyWanKenobi wrote: »

Sorry for terminology this is relatively new to me but hopefully you know what I mean.
I believe he did say about a charge being put on the property, I presume if they are happy with this the case will resolve at the specified date?
From our point of view, the OR is essentialy the landlord so from this point onward they might not charge rent but could give us a notice to leave? Also, does the original landlord / owner have any power to evict us until he has sorted out the bankruptcy?

Thanks

The Official Receiver is one nominated by the courts. It is definitely NOT your LL.


Yes the Original LL can evict you (since it seems the debts are being settled by a charge on the property)


A charge on the property literally means that, from the value for the property, £x is owed to this list of people.

TonyWanKenobi

Ok, thanks everyone for the replies. We just like to know where we stand as the landlord is probably witholding some things and the bailiffs (on behalf of the creditors) are probably bending the truth to find information.

So as I understand, either party can tell us to leave, but only the creditors can make us pay rent, and if we were to pay to the landlord from today, it would have to go to the creditors? Until all is resolved

Thanks again