Help-Landlady gone bankrupt!

silvercar

Fergie73 wrote:

Personally, I wouldn't pay any more rent until you know exactly where you stand. I'm not sure whether that's good advice or not though, just a personal gut feeling. ......but you have the right to find out where you stand and withhold rent until you do, I would think.

Fergie73 wrote:

It might well be bad advice - I have no idea about the legalities.

Posting bad advice when people are in upsetting situations is unfair on people who are already seriously worried.

I'm sure you didnt intend to be scaremongering, but it can give that impression.

wherediditallgo

macaque wrote: »

Presumably, the house is going to be sold and the OP will have to leave anyway.

In this situation, shouldn't the OP just withhold rent to cover the lost deposit whilst making arrangements to leave? Or would this make things worse?

It would make things worse. When someone becomes bankrupt, any assets become the property of the Official Receiver, whether that be bricks & mortar, valuable items such as antiques, or bank accounts. The receivers have to all intents & purposes taken over as landlord until the assets are looked at properly, so the tenancy agreement has passed to them. If the OP doesn't pay the rent, they're putting themselves at risk of eviction & could well lose their deposit too. If they want the right to stay in the property (even in the short term) & want their questions about the tenancy answered, they have to pay the rent.

It seems to me that both the landlady & the receivers are trying to do the right thing by the OP - the landlady could have kept schtum about the OP living there & either collected the rent herself or just let him find out what had happened if/when new owners took over the property, & the receivers have informed him of their involvement. Given that, it seems daft to me to put themselves in the wrong by not paying the rent, which will still be due whoever it's paid to.

clutton_2

if you withold rent, you will be evicted - dont do it.

Fergie73

Posting bad advice when people are in upsetting situations is unfair on people who are already seriously worried.

Which is exactly why I've advised the OP in both my posts to seek professional advice and speak to the people handling the bankruptcy. Taking advice from strangers on message boards - whether that advice is upsetting, or cheering - helps to an extent initially, but you have to establish exactly what your situation is, which isn't yet clear in this case, and what's the best course to take. If the house is already up for sale, then it's vital to establish the facts ASAP - is it being sold with sitting tenants or not? The OP is not currently in rent arrears, so to say she doesn't have a right to know this if she misses a month's rent is plain daft. She has a right to be kept informed about whether she's being evicted or what.

One thing for sure is that, if you're owed a deposit, you're a creditor. In a bankruptcy case, there is a list of preferential creditors. Mortgage holders are top as they own the collateral, the Inland Revenue is next. Tenants deposits are probably a fair way down the list. So I do think it's fair to try and protect yourself, if that becomes necessary.

As has been mentioned before in this thread, this is likely to become a more frequent occurrence over the next couple of years, so it would be really interesting to hear what happens, and what the professionals advise.

epz_2

does anybody advising the op to keep paying rent have any ideas how they can ensure they get the deposit back, otherwise i dont think saying suck it up an think of your credit score is particularly usefull.

silvercar

epz wrote: »

does anybody advising the op to keep paying rent have any ideas how they can ensure they get the deposit back, otherwise i dont think saying suck it up an think of your credit score is particularly usefull.

First question, is the deposit protected? If it is then the TDS will return the deposit.

If it isn't protected then the Receiver may agree to return it on the grounds that it isn't actually the bankrupt's money but belongs to the tenant.

Refusing to pay rent will just lead the receiver to chase the tenant for the missing rent. The receiver won't right off the rent owed just because money is owed to the tenant from the landlord.

As we move towards April '08 more and more tenancies will have been renewed post the TDS date and this will be less of a problem.

Fergie73

if you withold rent, you will be evicted - dont do it.

Not necessarily true. I've withheld once where repairs weren't done - told the agent I was withholding one month's rent and if they weren't done by the end of the month, I'd move out and take that month as my deposit. The repairs were done.

Finding out where you stand is the most pressing thing. Withholding one months rent (specifically one months - I'm not suggesting stopping paying altogether) won't get you evicted as long as you're communicating with the receiver and telling them what you're doing. You'll only ever be one month behind, which is nothing, but you have your deposit safe. They should be keeping you informed in any case, especially if the house is up for sale!

If it's in the deposit protection scheme it will be safe anyway, so that's definitely worth checking out first. To be honest though, I think focussing on the deposit right now is misguided. Better to find out first what your rights are regarding the tenancy and the sale, and how long you can stay on, then to look at the deposit issue with that knowledge in hand.

JayScottGreenspan

A load of anonymous posters giving advice plucked out of thin air? Great. My advice (also plucked out of thin air) is:

Go to the Citizens Advice Bureau. They've probably dealt with this situation a hundred times before.

HugoSP

JayScottGreenspan wrote: »

A load of anonymous posters giving advice plucked out of thin air? Great. My advice (also plucked out of thin air) is:

Go to the Citizens Advice Bureau. They've probably dealt with this situation a hundred times before.

Your second para got my thanks, your first has got my response.

I am actually a landlord and can offer the perspective of someone who could be the OPs future Landlord.

I ask for previous Landlord and employer references - my insurers insist on it.

If I find out that my prospective tenant widtheld a months rent I would want to know why. I would also want to know for what other reasons they may take this course of action.

Are they likely to do it only as a last resort after all communications have failed, or do they see it as a threat that they could roll out if I don't fix a leaky tap within 24 hours?

I may be understanding with the OPs situation if she viewed a property I had to let, however we never have trouble finding tenants, so we are going to go with the applicant who seemingly poses the lesser risk. The OP may be the dream tenant but she should consider seriously how witholding a months rent could hurt her chances of finding another place.

As the above poster has said, talk to the CAB then contact the lender and receivers. They will probably know what their responsibilities are, and how accountable they are towards the tenant and any money she may be owed.

We still don't know whether or not the tenancy started after April 2007. This will potentially have legal implications on the deposit.

nicola1982_2

Go see CAB taking the letter (check it's authentic etc). Cancel all standing orders etc to landlady. Write to receivers regarding deposit. I would also start looking for new accommodation now.