Landlord being made bankcrupt

[Deleted User]

sammyjammy said:

Its more likely they'll just put a charge on her house for the sum owed.

I hope so!

[Deleted User]

Cakeguts said:

Is you mother in law paying tax on the rent that you are paying her?  I know you think it is just paying her mortgage but actually you are paying her rent which is then used to pay her mortgage. She needs to declare that rent payment for tax.

As far as I know its declared income..

macman

The tenancy is probably unauthorised by the lender; at some point they will apply to seek vacant possession: you can then either leave, or wait to be evicted. But that point could be many months or years off yet. It's impossible to put a timescale on it.
You may not have a formal agreement, but nevertheless you have a legal tenancy, despite nothing being in writing. You pay rent, in return you occupy the property exclusively: so as soon as she moved out, you became tenants rather than lodgers, with all the rights that guarantees.

AdrianC

amy12456 said:

Myself, my partner, child and mother in law all lived together, 6 months ago she decided she needed her own space so she moved out into a property that she rents from agency. She kindly said we could stay here and just pay her the mortgage payment and the amount for bills every month. We are living here very cheaply and (silly of us i know) with no real formal agreement.

By "she", can I confirm that you mean your mother-in-law is the property owner and your landlord?

So I'm guessing one of her debtors have forced her into bankruptcy.

Creditors.
Debtors are people in her debt - people who owe her money.
Creditors are people whose debt she is in - people she owes money to.

Im now worried sick, what does this mean for us? If the lender repossess the property, then they will become your landlord. They will have to give you notice. That is currently six months, before they can even apply to a court for possession.

Your landlord is almost certainly in breach of her mortgage contract - so, even if not for the bankruptcy, the situation is very likely to be a problem sooner or later. Lenders do not issue consent to let to people who are letting to close family members below market rent. Even if she was not behind with her mortgage payments, the lender would be within their rights to call in their loan.

I THINK (don't quote me on this) the amount that the debt could be for is around £6000. I think the rest was included in a DMP, im not too sure why the £6000 wasn't.

This is not - as tenants - your problem.

Touchstones2

Maybe she not paid mortgages repossession

[Deleted User]

Your mother in law needs some support with financial management, and a higher rent payment.  It sounds like everyone has been a bit lacksadaisical about the situation.  If its a bankruptcy application, she can make repayment proposals.  But you might have find a way to save a deposit.., sounds like it would be useful to her to sell the property if she can.  I assume you have some loyalty to your MIL after she's let you live there for so many years?

Sorry if I sound mean, its just that there needs to be some serious reality based 'what can we do to help the situation' thinking here. And you might have to start looking after yourselves.  If you can't do anything financially, get yourself to the council.  The wonders of one room emergency accommodation await, eventually.