help with tennancy security

clarebo9

Hi, I am a newbie to posting although i have read many threads on the site and in the forums.I have a question regarding my tennancy, my landlord came to me yesterday to say that he is financially strapped and is going to end up going bankrupt. He said this in a very matter of fact way and finished by saying " I just thought you should know" I was gutted as I have lived here for over 6 months, i have added my touch to my flat and spent my own money doing so and have just under a year left on my tennancy agreement with him. I thought I would be secure but now I am unsure. Any help and advice would be much appreciated as I am wondering wether or not to try and find a new place to rent. Many thanks in advance

DGJsaver

It`s a shame to hear that
Did he mention your deposit amidst his tale of woe ?

clarebo9

Funnily enough no he didnt mention the deposit and neither did i, I will call him tonight to ask about it.

mlz1413

did your LL give any hint to the future? ie the property is up for sale or was it more a case he is giving keys back to the lender?

I'm not sure how him going bankrupt will affect you as a tenant, but my question (after finding out if the deposit is protected) would be if it's a btl would the mortgage company let you stay whilst you have a AST?

I feel really sorry for you being in this position, hope it all works out.

bryanb

On the deposit question is the tenancy via an agent or direct with LL?

silvercar

If the landlord had the correct mortgage, the mortgage company will acknowledge you as a tenant and you will be able to remain at the property until the end of your tenancy - though don't expect it to be renewed.

If the landlord was letting to you on a residential mortgage, with no consent to lease, the mortgage company won't recognise you and you could be evicted at the time of repossession.

Let the lender know you are living in the property as soon as possible.

bryanb

silvercar wrote: »

If the landlord had the correct mortgage, the mortgage company will acknowledge you as a tenant and you will be able to remain at the property until the end of your tenancy - though don't expect it to be renewed.

If the landlord was letting to you on a residential mortgage, with no consent to lease, the mortgage company won't recognise you and you could be evicted at the time of repossession.

Let the lender know you are living in the property as soon as possible.

Why assume the LL has a mortgage?

silvercar

bryanb wrote: »

Why assume the LL has a mortgage?

otherwise the landlord could get mortgage, based on rental income, and wouldn't need to go bankrupt.

If there is no mortgage and the landlord goes bankrupt, the OR will have to accept the tenancy (and allow for the rental income) and will require the property to be sold as soon as the tenancy ends.

With no mortgage and a let property, I wonder that bankruptcy would be the correct advice to the landlord.

moneysavinmonkey

clarebo9 wrote: »

Hi, I am a newbie to posting although i have read many threads on the site and in the forums.I have a question regarding my tennancy, my landlord came to me yesterday to say that he is financially strapped and is going to end up going bankrupt. He said this in a very matter of fact way and finished by saying " I just thought you should know" I was gutted as I have lived here for over 6 months, i have added my touch to my flat and spent my own money doing so and have just under a year left on my tennancy agreement with him. I thought I would be secure but now I am unsure. Any help and advice would be much appreciated as I am wondering wether or not to try and find a new place to rent. Many thanks in advance

you need to find out from your landlord what will happen to your tenancy if he is repossessed - will his lender honour your AST... ask him to get them to put this in writing to you as well.

Maybe get some advice from Shelter and/or CAB too.

bryanb

People go bankrupt through many reasons, not all connected with property, eg Business failure. He could owe millions. All I was pointing out was that it's not safe to make unsupported assumptions.

Debt_Free_Chick

bryanb wrote: »

People go bankrupt through many reasons, not all connected with property, eg Business failure. He could owe millions. All I was pointing out was that it's not safe to make unsupported assumptions.

But if he is going bankrupt, then the property is at risk of being seized by the OR and then sold to pay off his debts.

When the property is seized, the tenant's rights depend on the type of mortgage that the LL has - if there is a mortgage. If there isn't a mortgage, then the AST will run for the fixed term and the OR will need to "live with it" until the end of the fixed term.

To be honest, if someone has a rental property with no mortgage, they shouldn't be going bankrupt. They could simply raise a mortgage on the rental property to pay off the debts and avoid bankruptcy.

No-one is judging bankruptcy - we're simply asking relevant questions in order to establish the rights that the tenant has.