Tenanted Property and Receivers

sam_car

Hello

I’ve been renting in a flat share for the past eleven years. I’ve been on short assured tenancy agreements over for this time. This year I signed up with five others and in early January we received a letter at the flat addressed to the occupiers. The letter is aggressive and threatening in tone. It came from appointed fixed receivers who were demanding that we tenants paid them instead of the letting agent going forward. After some investigation the landlord has defaulted on a second mortgage on the flat. Thus why the mortgagor had exercised their right under S9 LPA 1925 to collect rent from the tenants. This has been forwarded onto the agents who are living on a different planet. They are continually claiming that we tenants should pay them and to ignore these receivers. There stance is that the receivers represent a second charge on the property and they should approach the landlord and not the tenants about this. The agency also keep on referring to the flat’s HMO licence as it states we should only pay the agency and this is another reason why we should not pay the receivers any rent money. Anyway we pay our rent separately into the landlords bank account. The other tenants are aware of the receivers and their demands but they will only pay the agency. I’m on the other hand are very cautious about the situation so I’m keeping my rent back in my bank account until the situation is clearer. Does anyone know about the situation concerning the HMO licence, and whether I would be liable to pay the rent twice, and what my liability would be for the other tenants? Thanks

sam_car

My mistake my post should refer to mortgagee and I blew s101 and not s9 LPA. Thank you

propertyrental

If the property has been repossessed by the mortgagees via the courts (and you should have had clear information about any such court hearing) then yes, the mortgagees are your new landlords. Related to this, read

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

But that does not seem to be the case here, so your original landlord still your landlord, and rent is still due to him.

If he is arrears with his mortgage lender, that is a matter between them - nothing to do with you.

theartfullodger

This is Scotland?? If so, suggest you 'phone Shelter scotland 
https://scotland.shelter.org.uk/about_us/contact_us/call_our_free_helpline
0808 800 4444

- after having read ..
https://scotland.shelter.org.uk/housing_advice

sam_car

Thank you for the responses. This is England but thanks anyway. 

theartfullodger

Thanks: I asked as a "short assured tenancy agreement" was a uniquely Scottish tenancy type - see...
https://www.mygov.scot/ending-a-tenancy-as-a-landlord/short-assured-tenancies

- think you've had "assured shorthold tenancies" , only available in England or Wales...

Herewith guidance you need...
https://england.shelter.org.uk/housing_advice/repossession/repossession_by_a_landlords_lender

sam_car

That’s well spotted. I studied property in Scotland so that must be where I picked up on the term. 

user1977

theartfullodger said:

Thanks: I asked as a "short assured tenancy agreement" was a uniquely Scottish tenancy type - see...
https://www.mygov.scot/ending-a-tenancy-as-a-landlord/short-assured-tenancies

Indeed, though the references to Receivers and the 1925 Act wouldn't have made much sense in Scotland...

Ratkin007

The HMO licence would not tell tenants who to pay their rent to.  The HMO licence has conditions to which the licence holder should adhere.  If you've not seen the licence, have a look on your local authority website as it may have the standard conditions.  Licences sometimes have a condition that a copy of the licence is given to the tenants or displayed in the property.  

sam_car

Thank you everyone for their input. I appreciate your help. So the situation has progressed onto the next stage and all of the tenants have been issued with a S8 notice. The estate agency on the other hand are still asking rent from us. They are saying about refinancing out to I assume to release cash and pay back the mortgage company. But is this possible with the fixed charge being appointed. Is it plausible for the borrower to do this or are we being given the run around? 

silvercar

The HMO licence may well be in the name of the letting agents, that gives them the right to operate the HMO. It doesn't mean that the rent has to go to them.

Of course the estate agent will ask you pay the rent to them, as they will keep a portion as their contract with the landlord will allow them to do this. Doesn't necessarily mean that they have the right to do so.

You need to find out if the issuer of the section 8 notice has indeed repossessed the property. When repossessing I would have thought that you should have been given notice that this has happened eg a letter through the door. You can contact the court to validate this.

S8 notices can only be given when the arrears are over 2 months, so on the rent due date the rent for the forthcoming month plus at least one month's rent is owed. If you are on individual tenancy agreements then each person is considered individually - so do you owe 2 months rent? If you have paid the agency rather than the new landlord in repossession, keep receipts to show in court if necessary.