I'm renting, paid 6 months up front and the flat is being repossessed!

chris_a_p

Hi there!

I'm new to the forum but I'm a regular visitor to the website and a receiver of the money tips email :]

Basically, I'm looking for some advice on where I stand in my situation!

I've recently moved into my own flat on 22nd December 2007 as I was sharing with 3 others before and our lease ended.

I managed to get a reduction in the rent from £700 a month to £650 provided I decorated the place throughout, which I have now done.

This involved painting the ceilings, walls and all gloss work (top and bottom skirting boards) and having the carpets cleaned professionally in the lounge, kitchen, hallway, two bedrooms and two bathrooms.

This took a long time and I eventually moved in on the 18th January.

Days later I received a letter addressed to the occupier so I opened it and it informed me that the landlord who has been renting my place for at least 6 months prior to me (that I know of) has not been keeping up with her mortgage repayments and that there is a court date on the 27th February re. Northern Rock repossessing the flat.

I spoke to my letting agent as soon as it came through and they asked me to forward on the letter and they will deal with it. So now I'm playing a waiting game!

I originally planned to stay here for at least 12 months, even 18 months if possible which is why I originally wanted to decorate it even though the lease is 6 months I was told the landlord is looking for a long term let.

I have paid 6 months in advance and I want to know what happens from here really!

1) Will I get to stay here for the 6 months at least no matter what happens?
2) Is the letting agent to blame as I was under the impression they should vet landlords like they do tenants - should they check the mortgage has been paid up to date? I know it takes a while of non payments to get to a court date.
3) If the house is repossessed will it go up for sale? Or will I possibly have the chance to rent it again?
4) If it does go up for sale could this be a good time for me to buy?
5) Would I get any sort of first refusal perhaps?
6) One other flat in my block sold for £155,000 in October 2007; have house prices dropped a lot since then?

Any other general comments about my situation would be much appreciated! Where I go from now, who to speak to, etc.

I hate having this in the back of my mind!

Thanks in advance
Chris

Phirefly

Chris thats a really rubbish situaton to be in and I'm sorry but I have no knowledge of ASTs.

You can't win it seems. Ask on here 'should I buy a house' and you get battered with the rent and see stick. Go and rent somewhere and you're out on your ear before you've even signed the AST agreement.

When we bought Tha Wharf, our options were limited. I won't bang on about all the reasons why it was the most sensible option at the time. I knew we were buying at a peak, and feel anxious abut the current climate. That said, tell you what I don't regret it one bit when the other choice is renting and going through what the OP has experienced and all of the other countless people who come on here with tennancy woes.

OP, you 've come to the right place and no doubt will get some good advice here on what to do for the best.

Iona_Penny

I am so sorry for your situation. When the case comes to court Northern Rock will probably be looking for a warrant of possession; I think if your landlord agrees to pay off the arrears it may be 'suspended' but then she will have to keep up mortgage payments or they will go for the property again. You need more advice but if this happens they will want VACANT possession and you will sadly be evicted regardless of the fact you are the innocent party (sl foolish to pay 6 months in advance?)

Take advice from the CAB. Where is your advanced rent and deposit? Pester the agents for information; I am sure they took their cut.

SouthCoast

Take advice from the CAB

And Shelter.

http://www.adviceguide.org.uk/

http://england.shelter.org.uk/home/index.cfm

Generali

Speak to the CAB or Shelter (tel 0808 800 44 44). Shelter are open today I think and do exactly what they say. You may well end up having to sue to get your money and so you don't want to do anything to mess up your chances of winning.

PasturesNew

If the landlord has a BTL mortgage/if the lender knows he is renting it out, you will certainly be able to stay for the full 6 months.

If he has been letting it out without the knowledge of the lender then you have no rights to stay and then it's just down to how secure you feel staying while they formally evict you etc.

Keep onto the agents. They have a moral responsibility to find you somewhere else if you're turfed out.

You would have some come back on getting your money back, although this isn't clear who from. Your best bet would be to sue the letting agent (starting by simply asking for your money back from them and seeing if they play ball). You have a lesser chance of getting it back from the landlord who has no money.

Is the flat fully managed by the letting agent, or did the landlord just use a Tenant Finding Service.

I presume your deposit is protected in the TDS.

Right now I would:
- mither the agents for a resolution as often as possible
- write to the lender to let them know I was there (dependent on what I thought the agent was doing)
- think about attending court on 27 February if necessary to pitch my case

If they repossess on 27th you won't have to get out on the 27th. There is more to the process after that date.

As for buying it. Unless it was the perfect flat, in the perfect place for you - and you'd have bought one there anyway, then it's probably best left or you're buying a flat when you had no intention of owning any property. And it would leave a bad taste in your mouth. As for price, yes, prices have dropped since the last one sold - and the one you are now in is a repossession, so could be expected to go quite a bit cheaper. But don't buy from panic. It's just a flat.

Good luck!

chris_a_p

Thank you to everyone that has replied to my post.

Now looking back I wish I hadn't had paid the full 6 months up front, but this kind of situation never crossed my mind!

I am going to phone Shelter first thing and then get on to the letting agent to ask where my money is.

The flat is a fully managed one so everything goes through the agent. I'd be happy to get my money back and move, there is no way I'm going to want to stay here if I can help it with this hanging over me. I'm avoiding setting up new furniture in case I just have to move again!

Shall I reply to the letter from Northern Rock's solicitor informing them of my situation?

Thanks once again,
Chris.

poppy10_2

Sounds like you have been pwned big time. Best of luck sorting things out

silvercar

yes, get in touch with Northern Rock today. If they acknowledge you as a tenant you will be able to stay for the length of your tenancy.

Guapa1

I have no solutions Chris, but just want to wish you the best. x

terryw

You really need professional advice here. But, the wheels move slowly and the hearing between NR and your LL could well be postponed if he comes up with some payment schedule acceptable to them. NR must then issue you with the proper notices and then obtain a court order for your eviction. The judge even then is more likely to give a possession order in the future rather than immediately. This all takes time. NR are likely to be reasonable towards you as publicity puts them in a bad light.

What I am trying to say is that you will probably get quite a bit of time in the dwelling towards the rent you've paid up front.

Realistically getting the rent repaid by the LL is unlikely but I would certainly give the agents some earache.

I stress here that you must take professional advice here.....perhaps CAB or Shelter first.
Good luck anyway