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In arrears, what to do

HomelessHopeless
HomelessHopeless Posts: 32 Forumite
in House buying, renting & selling
Good afternoon.

I have fallen into arrears with my rent. I am on a 12 month AST, currently five months in.

My employment was reduced for two months. I have paid £500 per month for September and October, my rent is £950, so I owe £900.

I contacted the EA before this all started to explain. I have offered to clear the arrears by the end of December 2018, and am happy to enter a payment plan. I will be in a position to pay my full rent from November onward.

The EA has contacted me today to say the Landlord is not inclined to accept this and so will seek legal advice. They have offered to ask the LL to agree to release me from the tenancy now, with a payment plan in place for the arrears. This would make me immediately homeless. I have asked for some time to consider things.

I know I have royally cocked up, I do not dispute that, but what are realistically my options? Can the LL serve an S21 and evict me? My arrears are equal to less than 8 weeks rent (just shy of one calendar month), does this make any difference when it is a private LL?

I am really worried about this and what I can or should do?

Any advice is more than welcome.
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Comments

  • Comms69
    Comms69 Posts: 14,229 Forumite
    Name Dropper First Anniversary First Post
    HomelessHopeless wrote: »
    Good afternoon.

    I have fallen into arrears with my rent. I am on a 12 month AST, currently five months in.

    My employment was reduced for two months. I have paid £500 per month for September and October, my rent is £950, so I owe £900.

    I contacted the EA before this all started to explain. I have offered to clear the arrears by the end of December 2018, and am happy to enter a payment plan. I will be in a position to pay my full rent from November onward.

    The EA has contacted me today to say the Landlord is not inclined to accept this and so will seek legal advice. They have offered to ask the LL to agree to release me from the tenancy now, with a payment plan in place for the arrears. This would make me immediately homeless. I have asked for some time to consider things.

    I know I have royally cocked up, I do not dispute that, but what are realistically my options? Can the LL serve an S21 and evict me? My arrears are equal to less than 8 weeks rent (just shy of one calendar month), does this make any difference when it is a private LL?

    I am really worried about this and what I can or should do?

    Any advice is more than welcome.
    The Landlord can evict for rent arrears, BUT to be honest by the time it gets to court you will be under the required 2 months arrears for a mandatory order.


    The court will then decide if evicting you is reasonable (which they tend to avoid)


    s.21 is only valid outside fixed term.
    s.8 is the rent arrears option.


    To be 2 months in arrears you would need to owe £950.01.
  • HomelessHopeless
    HomelessHopeless Posts: 32 Forumite
    Comms69 wrote: »
    The Landlord can evict for rent arrears, BUT to be honest by the time it gets to court you will be under the required 2 months arrears for a mandatory order.


    The court will then decide if evicting you is reasonable (which they tend to avoid)


    s.21 is only valid outside fixed term.
    s.8 is the rent arrears option.


    To be 2 months in arrears you would need to owe £950.01.

    Thank you for this. I thought two months in arrears meant two payments eg £1900? There's my first mistake. Still, as long as I repay the arrears it should be Ok? Even if issued with an s.8?

    I am so scared of becoming homeless
  • Comms69
    Comms69 Posts: 14,229 Forumite
    Name Dropper First Anniversary First Post
    HomelessHopeless wrote: »
    Thank you for this. I thought two months in arrears meant two payments eg £1900? There's my first mistake. Still, as long as I repay the arrears it should be Ok? Even if issued with an s.8?

    I am so scared of becoming homeless





    Nope, sorry.


    0.01 - £950 is 1 month
    950.01 - 1900 is 2
    etc.


    There is also a discretionary ground for being in arrears, as well as, paying rent late. So obviously keep communicating, put your offer in writing. And pay asap.


    Given you can in theory afford £950 + arrears per month, even if you are evicted, why would you be homeless?
  • saajan_12
    saajan_12 Posts: 3,621 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    HomelessHopeless wrote: »
    Good afternoon.

    I have fallen into arrears with my rent. I am on a 12 month AST, currently five months in.

    My employment was reduced for two months. I have paid £500 per month for September and October, my rent is £950, so I owe £900.- did you have any savings? or spend money on any other non essential bills? Rent is a priority bill and if you become homeless due to non payment of rent, the Council will use that as a reason to not help.

    I contacted the EA before this all started to explain. I have offered to clear the arrears by the end of December 2018, and am happy to enter a payment plan. I will be in a position to pay my full rent from November onward. - how will you be able to achieve this and ensure arrears dont happen again? Perhaps contact your LL directly who may be more flexible and want to avoid voids. Show them the proof eg proof of income etc. Note if you do make up the arrears by December 2018 then there's little the LL can do legally until your fixed term finishes. However this may have made them nervous and the agent may convince them to evict eventually, so you reassuring the LL could help you long term.

    The EA has contacted me today to say the Landlord is not inclined to accept this and so will seek legal advice. They have offered to ask the LL to agree to release me from the tenancy now, with a payment plan in place for the arrears. This would make me immediately homeless. I have asked for some time to consider things. - They are suggesting this because if you leave, the agent gets new fees and the landlord avoids the risk of you falling into arrears again since you seem to be living paycheck to paycheck currently while being in possession of their property.
    I would explain that it would take you longer to clear the arrears if you also have to find alternate accommodation (new deposit, moving costs, less able to work due to upheaval). Present your plan for how you can get the arrears paid off and won't have this issue again.

    I know I have royally cocked up, I do not dispute that, but what are realistically my options? Can the LL serve an S21 and evict me? - yes, since you're out of the first 4 months. However it must give at least 2 months notice and can only expire on / after the end of the 12 month fixed term. Then they must apply to court for a possession order, who will give you a possession date, and then apply for bailiffs who actually kick you out. All in you have 9 months+ My arrears are equal to less than 8 weeks rent (just shy of one calendar month), does this make any difference when it is a private LL?- yes, it means the LL can't serve Section 8 notice on a mandatory ground until the arrears are £1900 ie 2 months. They can serve on a discretionary ground for any amount of arrears, but the judge can decide whether to evict or not.. if you have cleared teh arrears by the time it gets to court, then this would fail.

    I am really worried about this and what I can or should do?

    Any advice is more than welcome.

    You can simply ask the agent NOT to terminate because you have a definite plan to clear the arrears quickly and a termination would hurt both the LL (void while property is empty and searchign for new tenant) and you (upheaval costs)

    However if it gets into a long debate, I'd simply go ahead with your plan to pay down the arrears and make sure you never get in this position again.
    * LL can not serve Section 8 notice on mandatory ground if arrears below £1900 (2 months)
    * LL can serve Section 8 notice on a discretionary ground but the judge would decide, and if you have already cleared or have a plan to clear it quickly, and are not a chronic late payer, I doubt they'd evict.
    * LL can serve a Section 21 notice but it must expire on or after the fixed term ends, then the LL has to go to court etc.. all in 9+ months from now and by then if you have a good record of timely rent payments, its unlikely the LL would.
  • Blackpool_Saver
    Blackpool_Saver Posts: 6,599 Forumite
    If you want to stay, and things are going to get better.....why not get a loan or overdraft.....
    Blackpool_Saver is female, and does not live in Blackpool

  • HomelessHopeless
    HomelessHopeless Posts: 32 Forumite
    Thank you both for your help here. I am still confused by the two month rule, but the arrears shouldn't increase.

    Due to my health and that of a close family member, I have not been working my full hours. The situation was the same when I signed the AST and the EA/LL was aware. My employer however stopped allowing me to work from home and my wages were cut to reflect this.

    I am now back working full time (all explained to EA/LL in writing). I will be able to pay my full rent on time, and will receive a gift at Christmas to clear the rest (I will make payments on top of my rent in the meantime). Again, EA/LL aware of this. I cannot ask for the gift early otherwise I would, and close the matter now.

    If I do manage to not be evicted I don't think I will be renewing the AST even if it were offered.

    I would struggle to rent as I do not have any savings. I currently rent on a no deposit scheme with the EA as I had to move out very quickly. I wouldn't have a good LL reference, either!

    Thank you both for your help
  • Comms69
    Comms69 Posts: 14,229 Forumite
    Name Dropper First Anniversary First Post
    saajan_12 wrote: »
    You can simply ask the agent NOT to terminate because you have a definite plan to clear the arrears quickly and a termination would hurt both the LL (void while property is empty and searchign for new tenant) and you (upheaval costs)

    However if it gets into a long debate, I'd simply go ahead with your plan to pay down the arrears and make sure you never get in this position again.
    * LL can not serve Section 8 notice on mandatory ground if arrears below £1900 (2 months) - sorry just the one correction, otherwise great advice. it's £950.01
    * LL can serve Section 8 notice on a discretionary ground but the judge would decide, and if you have already cleared or have a plan to clear it quickly, and are not a chronic late payer, I doubt they'd evict.
    * LL can serve a Section 21 notice but it must expire on or after the fixed term ends, then the LL has to go to court etc.. all in 9+ months from now and by then if you have a good record of timely rent payments, its unlikely the LL would.


    Mostly this is excellent advice
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    First Anniversary Name Dropper First Post
    If you have offered to clear the arrears by the end of December that will mean that you will be in arrears for 4 months on rent that has to be paid before you spend any money on anything else.



    Not paying rent is not an option if you are short of money. So don't plan to spend a lot of money on Christmas presents or going out. Your rent is more important than celebrating Christmas. I hope that you are not waiting to pay off your arrears at the end of December because you have put money aside for Christmas. There is no point in spending money on Christmas and then having nowhere to live.



    You need to pay off the arrears as soon as possible. December is too late. 4 months is too long if you want to keep this home.



    https://england.shelter.org.uk/housing_advice/eviction/eviction_with_a_section_8_notice


    https://england.shelter.org.uk/housing_advice/private_renting/tenants_responsibilities
  • Balabalabala_and_Volare
    Balabalabala_and_Volare Posts: 1,009 Forumite
    So, you've read some pseudo legal advice and had a slap on the wrists about personal responsibility. Take that as you will. What follows is in the real world:

    Your LL doesn't want to evict you.
    The letting agent doesn't want to evict you.
    Both are looking for reasons not to evict you. (LL gets the rent, LA get their cut)
    You have 7 months to give them a good reason not to evict you (5 months really, as S21 is 2 months notice)
    A promise is a guarantee to a fool.
    Focus on getting your rent account up to date and only make assurances you are able to adhere to.
    Adhere to any promises given.
    Why would a LL want to instruct the eviction of a rent paying tenant with a clear rent account?
    Even if they did, a clear rent account will be a positive to any future LL.
  • Slithery
    Slithery Posts: 6,046 Forumite
    First Anniversary Name Dropper First Post Photogenic
    edited 12 October 2018 at 11:55PM
    Balabalabala_and_Volare wrote: »
    The letting agent doesn't want to evict you.
    Are you sure about that bit?

    I reckon that an agency gets a lot more for notice proceedings + a check-out/check-in + tenant finding + fees from new tenant + preparing new contracts for LL + everything else they charge for than the loss of a few months of management fee.

    I might just be being cynical though :)
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