Landlord gone bust

harvoo

Hello,

I currently rent a flat through an estate agent with a private landlord. A week ago a man turned up at my house when i was in work and left paperwork saying that my landlord has gone bust and i should make no further payments to them and should make them to their company instead. I have checked the company out and they are legit but was wondering what this means for me as they gave little information.

will i be asked to leave my flat? Or will i just have a new landlord

Thanks

propertyrental

See

Post 6: Repossession: what if a LL's mortgage lender repossesses the property? 

Applies to bankrupt too)

_Penny_Dreadful

What is the letting agent saying? 

Alderbank

You will have a new landlord.

You might also be asked to leave your flat.

Where do you live? and what are the terms of your tenancy agreement?

Brie

I wouldn't be paying anything to someone who simply showed up with some paperwork no matter how legit they appear.  I'd suggest you continue to set aside your rent until you hear further from the letting agent.  I doubt it's actually a scam but I think one should be cautious.

LegallyLandlord

Sorry to hear this. I think this will happen more and more. 

It does sound strange that someone would turn up in person, without the Letting agent being involved and with no proof. 

If your landlord has gone bust and (say) the bank owns the flat, you’ll be in the same position legally as you were in with your original tenancy, and the new owner will take on that agreement. If it’s still in a fixed term period, you’ll have the right to stay there until the end of the fixed term. If it’s now a periodic monthly tenancy, the new owner will have the same right as the original landlord to use section 8 or 21 to terminate. 

I would email your letting agent and let them know what has happened, and send copies of what you’ve been asked to sign. Ask for guidance in writing. Certainly don’t start paying anyone else until you are told otherwise by the letting agent, and have something signed in writing from the letting agent. 

Legally you should keep paying the original account until the original tenancy is validly amended, as you are bound by it.

hope that helps 

propertyrental

LegallyLandlord said:

...

It does sound strange that someone would turn up in person, without the Letting agent being involved and with no proof.   Indeed...

If your landlord has gone bust and (say) the bank owns the flat, you’ll be in the same position legally as you were in with your original tenancy, and the new owner will take on that agreement.
Not necessarily. Much depends if the tenancy was 'authorised' ie the LL had a BTL mortgage (or CTL). If the LL had let the flat out without the bank's authorisation (yes, it happens!) the legal position is more precarious. See my link in post 2 above)

...

I would email your letting agent and let them know what has happened, and send copies of what you’ve been asked to sign. Indeed, though it's possible the agent has no knowledge.  
Ask for guidance in writing. Certainly don’t start paying anyone else until you are told otherwise by the letting agent, and have something signed in writing from the letting agent. 
It is for the new owner, not the agent, to inform the tenant in writing (Landlord & Tenant Act 1985 (S.3) )

Legally you should keep paying the original account until the original tenancy is validly amended, as you are bound by it.
by 'legally' I assume you mean 'contractually'.

In practical terms, where there is temporary doubt as to who is entitled to the rent, it is wise to stop paying (yes, a breach of contract but not 'illegal'), but to set the rent aside (eg a separate savings account?) ready to pay once things become clear.

I repeat, read
Post 6: Repossession: what if a LL's mortgage lender repossesses the property?

user1977

What exactly does the "paperwork" say and who is it from?

theartfullodger

Write/email agent & original landlord requesting confirmation FROM ORIGINAL LANDLORD that this story is correct.  And confirmation ownership of property has changed - WITH EVIDENCE.

This could be, for example, a rogue ex employee from agent fancying a extra bit of income.  You could end up having paid them but still owing original landlord...

You do not have to own a property to be the landlord.

harvoo

user1977 said:

What exactly does the "paperwork" say and who is it from?

These are the letters 

harvoo

_Penny_Dreadful said:

What is the letting agent saying? 

Letting agent didn’t say much, rang and asked if they knew anything and they said not a lot basically but that it was correct