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Leafy

Landlord Bankruptcy

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All, can anyone help to shed some light on my situation..?

Having read HPC on a daily basis, since the start of this year, I sold up and moved into rented a couple of months ago. I signed a tenancy agreement with the lady who owns the house I now rent and moved in.

A couple of days ago I was informed by the Insolvency Service that her husband (still the co owner of the house) has had a bankruptcy order served against him, 20 days before I signed the tennancy agreement. I ran a search on the land registry website and he is indeed still the co-owner.

The Insolvency chaps are telling me to stop paying the rent to the (useless) letting agent, and to pay them directly instead. I pointed out to the Insolvency guys that my contract was not with the chap who was in trouble, but, with his wife, they still said promptly in an email to pay them directly and no one else - A reciever is to be appointed middle of next month, until then I'm in limbo.

So, bullet points of the situation:

- Signed tenancy agreement (in the chaps wife's maiden name) end of August and moved in

- Paid deposit and 1st and 2nd months rent, no problem

- Took receipt of a letter from the insolvency guys telling me to stop paying rent to LA

- Spoke to letyting agent (useless), they tell me they sorted it with the Insolvency guys.

- Emailed Insolvency Agency guys myself (don't trust any LA's) they still inform me to pay them directly.

- Inform the IA guys that the contract is with the Mrs and not the (in the crap) Mr, they dont flinch

- LA tells me to keep paying rent or I'll get evicted

- I tell the LA that I will no doubt have a misrepresentation case against them, they blame the owner

- The rent is due at the end of the month, I'm at a loss as to what to do.

I'm not sure if the Insolvency guys will want to sell the house to pay off his debts, I'm not sure if I'm legally bound to pay his wife (in her maiden name) the monthly rent, and I've still not had an inventory to sign off and the dishwasher is STILL broken, the LA are now telling me they can't fix the dishwasher because the IA are involved, nothing they can do!

I have a mental image of hoardes of useless government types, eventually turning up in vans with blacked out windows to fix it, once they have discussed it for 2 years and filled in all the necessary paperwork. Clearly the IA will not be 'managing' the property, so, do I break out the management part and pay the LA that sum and forward the rest to the IA, and if I do this, will the lady (co owner) start legal proceedings against me?

I've run a search on the internet, CAB, Shelter et al, no joy.. Does anyone out there have a similar experience or can anyone shed light as to the legal position before I pay for legal counsel, (I'm of a mind to sent the legal bill to the LA)?

I fear that this situation is probably going to become a regular thing over the next few years, has anyone experienced anything of this nature before?

Yours in hope and despair, Leafy

-

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All, can anyone help to shed some light on my situation..?

Having read HPC on a daily basis, since the start of this year, I sold up and moved into rented a couple of months ago. I signed a tenancy agreement with the lady who owns the house I now rent and moved in.

A couple of days ago I was informed by the Insolvency Service that her husband (still the co owner of the house) has had a bankruptcy order served against him, 20 days before I signed the tennancy agreement. I ran a search on the land registry website and he is indeed still the co-owner.

The Insolvency chaps are telling me to stop paying the rent to the (useless) letting agent, and to pay them directly instead. I pointed out to the Insolvency guys that my contract was not with the chap who was in trouble, but, with his wife, they still said promptly in an email to pay them directly and no one else - A reciever is to be appointed middle of next month, until then I'm in limbo.

So, bullet points of the situation:

- Signed tenancy agreement (in the chaps wife's maiden name) end of August and moved in

- Paid deposit and 1st and 2nd months rent, no problem

- Took receipt of a letter from the insolvency guys telling me to stop paying rent to LA

- Spoke to letyting agent (useless), they tell me they sorted it with the Insolvency guys.

- Emailed Insolvency Agency guys myself (don't trust any LA's) they still inform me to pay them directly.

- Inform the IA guys that the contract is with the Mrs and not the (in the crap) Mr, they dont flinch

- LA tells me to keep paying rent or I'll get evicted

- I tell the LA that I will no doubt have a misrepresentation case against them, they blame the owner

- The rent is due at the end of the month, I'm at a loss as to what to do.

I'm not sure if the Insolvency guys will want to sell the house to pay off his debts, I'm not sure if I'm legally bound to pay his wife (in her maiden name) the monthly rent, and I've still not had an inventory to sign off and the dishwasher is STILL broken, the LA are now telling me they can't fix the dishwasher because the IA are involved, nothing they can do!

I have a mental image of hoardes of useless government types, eventually turning up in vans with blacked out windows to fix it, once they have discussed it for 2 years and filled in all the necessary paperwork. Clearly the IA will not be 'managing' the property, so, do I break out the management part and pay the LA that sum and forward the rest to the IA, and if I do this, will the lady (co owner) start legal proceedings against me?

I've run a search on the internet, CAB, Shelter et al, no joy.. Does anyone out there have a similar experience or can anyone shed light as to the legal position before I pay for legal counsel, (I'm of a mind to sent the legal bill to the LA)?

I fear that this situation is probably going to become a regular thing over the next few years, has anyone experienced anything of this nature before?

Yours in hope and despair, Leafy

-

AAWWOOGGAA!!

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Guest Guy_Montag

I would recommend

1) going into a CAB & asking their advice in person.

2) getting legal advice

3) paying your rent into a new account, explain to all parties (LL, LA & IA) that until you have an agreement from all three you will continue paying your rent into the account, where it will be available when they reach an agreement.

Disclaimer:

I have no legal training, but just basing this on what I have read in other forums.

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I suggest that you move out at the earliest point that your agreement allows.

Depending upon whether your deposit is held by the (insolvent) landlord or by the agency you may wish to withold your last months rent to guard against the possible loss of the deposit.

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See the Citizens Advice Bureau ASAP.

If you can't see them before the rent is due pay it into a seperate account. If the Letting Agent or the Insolvency Agent gets shirty say that:

(1) All correspondence has to be in writing

(2) (In writing) that you are still paying rent into a seperate account

(3) That the Letting Agent and the Insolvency Agent are to sort this out amicably amongst themselves if they want to see a penny of the rent.

As far as I can see the Letting Agent is in the right until the Insolvency Administrator has legal title over the property.

If they evict you then you walk away with the rent.

For goodness sake, make sure that everything that anyone says is in writing. Even if it is verbal and they refuse to confirm in writing, write a letter to them (with the other party copied in) repeating what they said with words to the effect "As far as I understand, this is what you said. Please correct me if I'm wrong."

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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