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Bankrupt Landlord

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Hello,

I am new to this forum and need some help:)!

I am in Assured Shorthold Tenancy which ends Dec 2010. In 04/ 2010 I received a letter saying that there will be a re-possession hearing against my landlord as he is in arrears with his mortgage payments. I contacted my landlord and he said he won't pay and he can't do anytnhing about my problem. I then contacted the solicitors dealing with the repossession claim and they answered me that it would be a coflict of interest for them to give me any information prior to possession of the property. I started looking for my rights as a tenant to stay in the property and found that I don't have any. So I started looking to buy a house as I didn't want to end up homeless. The sale is realy close to completion and I am not sure how to get out of my fixed term tenancy agreement. On top of that I just found out my landlord has been made bankrupt in Feb 2010.

I am paying rent to a Letting Agent who deals with the rented property.I the Mortgage Company is the owner of the house, should I keep paying rent to the Letting Agent?

How can I find out who is the owner of the rented property? Should I give notice to anyone as I don't really want to stay in this property any longer?

Is the only right I have in this situation just to wait to be evicted be the new owners?! There is a lot of information on-line of what your rights are if you want to stay in the rented property if the house is repossessed but no information on what to do if you want to leave? If the mortgage company is now the owner of the house, is the contract with the Letting Agent still valid? Are they obliged to ask me whether I would like to continue my tenancy with them as new owners( as my contract is with the letting agent representing the bankrupt landlord, not with the mortgage company?)

I would be grateful for any help you can give me, thanks!

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Hello,

I am new to this forum and need some help:)!

I am in Assured Shorthold Tenancy which ends Dec 2010. In 04/ 2010 I received a letter saying that there will be a re-possession hearing against my landlord as he is in arrears with his mortgage payments. I contacted my landlord and he said he won't pay and he can't do anytnhing about my problem. I then contacted the solicitors dealing with the repossession claim and they answered me that it would be a coflict of interest for them to give me any information prior to possession of the property. I started looking for my rights as a tenant to stay in the property and found that I don't have any. So I started looking to buy a house as I didn't want to end up homeless. The sale is realy close to completion and I am not sure how to get out of my fixed term tenancy agreement. On top of that I just found out my landlord has been made bankrupt in Feb 2010.

I am paying rent to a Letting Agent who deals with the rented property.I the Mortgage Company is the owner of the house, should I keep paying rent to the Letting Agent?

How can I find out who is the owner of the rented property? Should I give notice to anyone as I don't really want to stay in this property any longer?

Is the only right I have in this situation just to wait to be evicted be the new owners?! There is a lot of information on-line of what your rights are if you want to stay in the rented property if the house is repossessed but no information on what to do if you want to leave? If the mortgage company is now the owner of the house, is the contract with the Letting Agent still valid? Are they obliged to ask me whether I would like to continue my tenancy with them as new owners( as my contract is with the letting agent representing the bankrupt landlord, not with the mortgage company?)

I would be grateful for any help you can give me, thanks!

Why do you not want to stay? The new owner may be happy for you to do so.

Tim

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Stop paying anything to your bankrupt landlord (or his agent). You know your tenancy agreement is invalid (because your landlord was demonstrably not entitled to enter into it). It's money down the drain! Do save the money (pay into a separate ringfenced account if you don't have the discipline), so you're in a position to pay if the whole thing gets resolved.

Apart from that, either stay (if you get the chance - you'd have to talk to the bank about that) or cut your losses and get out.

IANAL. The above is not legal advice.

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Because I bought another house.

Well you'll just have to hope that the finance company give you notice, because there is no legal basis on which you can do it (before December)

tim

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Well you'll just have to hope that the finance company give you notice, because there is no legal basis on which you can do it (before December)

tim

Aren't the new new owners going to ask me whether I would like to continue my tenancy with them as lanlords? I don't have a tenancy agreement with them but with the bankrupt lanlord.

And what is the tenant supposed to do in such situation: wait until they are evicted( which may be after a short notice if the mortgage company decides it wants to take possession of the house. There is nothing a tenant can do to stay in the property unless the mortgage company wishes to leave him, as far as I know...) before they start looking for a new house?!

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Aren't the new new owners going to ask me whether I would like to continue my tenancy with them as lanlords? I don't have a tenancy agreement with them but with the bankrupt lanlord.

And what is the tenant supposed to do in such situation: wait until they are evicted( which may be after a short notice if the mortgage company decides it wants to take possession of the house. There is nothing a tenant can do to stay in the property unless the mortgage company wishes to leave him, as far as I know...) before they start looking for a new house?!

You have a lease until the end of December.

That cannot be ended by the landlord selling the house on to someone else otherwise there would be no such thing as a "sitting tenant".

Or course you can mutually agree to end the lease but why would they want to do that

tim

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You have a lease until the end of December.

That cannot be ended by the landlord selling the house on to someone else otherwise there would be no such thing as a "sitting tenant".

Or course you can mutually agree to end the lease but why would they want to do that

tim

Doesn't his situation depend on the tenancy pre-dating the mortgage, or it being a BTL mortgage?

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Doesn't his situation depend on the tenancy pre-dating the mortgage, or it being a BTL mortgage?

wrt the mortgaees being able to evict him - yes.

wrt him being able to end the contract - no.

tim

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I am paying rent to a Letting Agent who deals with the rented property.I the Mortgage Company is the owner of the house, should I keep paying rent to the Letting Agent? You should continue paying rent to the letting agents until told by the letting agents/mortgage company to do otherwise.

How can I find out who is the owner of the rented property? The new owners should have made themselves aware to you. You seem to the think its the mortgage company, why do you think this?

Should I give notice to anyone as I don't really want to stay in this property any longer? You cant end the tenancy before Decemeber unless the LA/LL/Mortgage company agree. When you wish to leave in December, no notice is required. However in this complex situation I would personally serve notice on who it says to serve notice on in the tenancy agreement, unless you are told otherwise in the interim

Is the only right I have in this situation just to wait to be evicted be the new owners?! What makes you think you are going to be evicted?

There is a lot of information on-line of what your rights are if you want to stay in the rented property if the house is repossessed but no information on what to do if you want to leave? That because you cant just leave

If the mortgage company is now the owner of the house, is the contract with the Letting Agent still valid? Yes

Are they obliged to ask me whether I would like to continue my tenancy with them as new owners( as my contract is with the letting agent representing the bankrupt landlord, not with the mortgage company?) No - your contract is for a property not a landlord

I would be grateful for any help you can give me, thanks!

Good luck.

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Good luck.

Thank you for your answer!

I do believe my landlord's house is going to be repossessed ( if not repossessed until now already because I have been in contact with him and he has stated several times he doesn't have the money to pay anything to the mortgage lenders. Mortgage company is not getting my rent at the moment, therefore probably would be happy for me to leave earlier than contract ends so that they can sell the house and get money to cover mortgage lended? My last AST has an additional clause compared to the previous ones I have signed- there is a Ground 2 Notice To tenant- Mortgage, which allows premature termination of AST. I will write the full text:

'The Agreement is intended to create an AST as defined by Section 19a of The Housing Act 1988 and shall take effect subject to provisions for termination and possession contained within section 21 of The Housing Act 1988 and which state that to excercise such provisions the Lanlord will give the tenant two months notice of any such intention.

Mortgage- GROUND 2 NOTICE TO TENANT

The Landlord gives notice to the tenant that possession of the premises may be sought under Ground 2 of Part I of The Schedule of the Housing Act 1988 in that:

The premises are subject to a mortgage granted before the begining of the tenancy and; the mortgagee is entitled to excercise a power of sale conferred on him by the mortgage or by section 101 of the Law of Property Act 1925; and the mortgagee requires possession of the premises for the purpose of disposing of it in excercise of that power and; either notice was given as mentioned in Ground I above or a Court is satisfied that it is just and equitable to do so'

This means that my AST could be ended before the end of the fixed term, am I right? If the mortgage company wants possession of the property ( because they don't get paid any money at the moment from me living there ) can they use this break clause in my contract to end the AST now? And we all are going to live happily ever after?

Thank you very much for all your answers!

Clover

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I was in a similar situation many years ago.

I do believe that you have the right to go to the bancruptcy hearing and let them know you have a tenancy.

I was lucky and the local council helped me to find other accomodation, so it may be worth asking them for help and advice.

On the basis that you are being made homeless through no fault of your own.

If you want to find out who owns a property, you can go to the land registry website, register which only takes a few minutes. then go to find a property, put in your post code and the details of the property should come up. it only costs about 4 quid i think to get a copy of the title deed, which will tell you who the owner is and also who has charges against that property.

Good luck.

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  • 261 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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