Section 21, landlord selling, wants early settlement

greatcrested

Hoping4Help said:

So we should immediately pay rent due?

Housing officer said can pay it retrospectively-if we can pay this off would negate a section 8

For a S8 Ground 8 to be valid, 2 months rent must be outstanding both on the date it is served and on the date it goes to court. Reducing the outstanding rent to below the threshold the day before the court hearing would negate the S8 G8.

However a S8 ground 10 can be used with any outstanding rent - even £1. S8 ground 12 does not require any outstanding rent, but requires a history of arrears.

The difference is that with G8 the court must grant the LL possession. With G10 & G12 it is discretionary, and courts are generally unwilling to repossess unless there are also other over-riding reasons. See

Schedule 2 (17 S8 Grounds a LL can use)

Hoping4Help said:

.. I had looked at this before but could not decide which category we come into.
Now the landlord has served a section 21, housing said he could not now start a different route for proceedings to evict
Is that correct? or is the devil in the detail of whether we are service occupier  or service tenancy? Do either give us more rights
Employment contract states "To enable you to perform your duties the employer will provide you with accommodation during your employment."The terms on which you are offered such accommodation will be subject to a separate AST
We have a separate AST cant find anything in it but re-reading  again In case I missed something.

"To enable you to perform your duties the employer will provide you with accommodation " strongly suggests you are a Service Occupier

• it is essential for you to live in the accommodation to do your job, or
• your employment contract says it’s necessary to live in the accommodation to do your job better

However your contract then refers to an AST, a copy of which you have, which would only be relevant if you were a Service Tenant.

As a tenant with an AST you have greater protection, so as this seems to be how your employer/landlord is treating you, go with the flow! See also

https://england.shelter.org.uk/legal/security_of_tenure/tied_accommodation/service_occupiers

Hoping4Help said:

A clause in the settlement agreement states "It is agreed that you will remain in the property subject to the terms of the AST until 31 January 2021. As a strict condition of this agreement you will vacate on or before 31 Jan 2021, in accordance with terms of the AST" 
So if we agree to their terms we have to leave the property by 31 Jan and we have a lump sum
OR Can we still remain in the property and NOT take the money even though the  agreement is signed?
Am I correct

An AST can only be ended by

1) the tenant leaving at the end of the fixed term

2) the tenant serving valid notice (eg in a subsequent periodic (rolling) tenancy)

3) by mutual agreement between the LL and tenant, or

4) the landlord applying to court via a S21 or S8 notice.

The Settlement agreement, once agreed and signed, would comply with 3) above,so yes, you would have to leave on Jan 31st, and the LL would be obliged to pay you the agreed amount. I would strongly suggest the settlement agreement be checked by a solicitor familiar with tenancy law.

If, having signed the agreement, you did not leave on Jan 31st, I believe you may be liable to double rent under the Distress For Rent Act 1737  (yes - it's still in force). see also explanation here.