Do I need to serve Section 8 now or later?
Hello, is there a time limit on how long landlords have to serve a Section 8 repossession notice for Rent Arrears?
I have a property with a Universal Benefit tenant who has amassed 6 months’ worth of rent arrears. I believe her when she tells me that this is because the DSS has failed to pay her, which is primarily down to her inability to cope/engage with the DSS.
I would like to know whether I need to serve her with a Section 8 now, or whether I can wait 12 months.
She doesn’t really look after the property and is clearly suffering from poor mental health. Frankly, this isn’t my concern. Section 24 tax rules combined with the huge increases in mortgage rates mean that once my fixed deal comes to an end in 12 months time, I will not see a reasonable return on my investment. And because she fits in the ‘difficult’ box, I intend to repossess the property next year and sell it to reduce my tax burden.
I don’t want to sell it now, as I would have early redemption penalties. There is plenty of uncertainty at the moment regarding the abolition of Section 21, although it is likely that there will be a preserved ground if the property is to be sold. But we don’t know what that will look like, whether granting possession will be discretionary or mandatory, and how long or expensive the process will be.
It might be sensible for me to seek repossession now rather than wait a year.
So, does anyone know whether I will still be able to use Section 8 Rent Arrears in 12 months time if these rent arrears relate to payments that were not made almost 24 months prior? Am I obliged to take action sooner than later?
Thanks,
Jessie
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Member Since April 2020 - Comments: 29
10:43 AM, 19th February 2024, About 2 years ago
I would serve S8 and S21 now. The Council will have to rehome her and they will tell her to stay put until the Bailiffs evict her. My last eviction took 18 months and in most parts of the country it will take 12 months. If, by some miracle, you get your property back before, it will give you time to get it ready for selling. If you leave it, you will be stuck paying the higher mortgage rate while the court process drags on.
Member Since August 2016 - Comments: 1190
10:47 AM, 19th February 2024, About 2 years ago
It’s proposed that when the Renters Reform bill is passed any rent arrears which relate to payments due to the tenant from the DSS and are unpaid for any reason will not be classed as arrears. This will be a huge problem as there’s no way a landlord can calculate this as the Universal Credit department will not provide a landlord with any information whatsoever always saying refer to the tenant.
I’d seriously consider issuing a Section 21 while you can and consider paying your mortgage redemption penalty. With most mortgage products the penalty is only a minimal amount say 1% when you get nearer the end of the fixed rate term. Also bear in mind it could take many months to sell as the market is cooling off now and you may get a buyer who pulls out and you will need to re market. Or there can be lengthy delays if you’re in a chain. And you will need to carry on paying your mortgage but this may not be so bad if you’re still on your low fixed rate while selling.
Member Since October 2020 - Comments: 1173
10:59 AM, 19th February 2024, About 2 years ago
Why would you want to wait 12 months to serve notice on a non-paying tenant?
Member Since August 2016 - Comments: 1190
11:02 AM, 19th February 2024, About 2 years ago
Reply to the comment left by David at 19/02/2024 – 10:59
Mortgage redemption penalties. Actually what is the penalty here ?
Member Since April 2014 - Comments: 985 - Articles: 2
11:35 AM, 19th February 2024, About 2 years ago
I would suggest you seek legal advice and consider employing a company that specialises in evictions. This is not for the inexperienced unless you want to risk further costs Good luck. 8f you have legal cover with your landlord insurance, they should help.
Member Since March 2023 - Comments: 1506
11:54 AM, 19th February 2024, About 2 years ago
Serve it now, be aware though that she could put in a defence that she hasn’t been paid by DWP which the judge can take into account (more likely that her claim has been rejected). Be prepared for the old mental health defence as well to spin it out longer.
Member Since March 2022 - Comments: 142
2:35 PM, 19th February 2024, About 2 years ago
Unless you have a solid mandatory S8 ground you’re better off using a section 21, avoid any discretionary S8. Forget the arrears argument it’s just going to slow the process. Might need to accept that as a loss but as others have said get the ball rolling ASAP and you’re probably in for a bumpy ride. Good luck seek specialist
Member Since October 2022 - Comments: 402
4:15 PM, 19th February 2024, About 2 years ago
What jasam said. S8 and s21 now.
Member Since March 2023 - Comments: 1506
4:43 PM, 19th February 2024, About 2 years ago
Reply to the comment left by JaSam at 19/02/2024 – 14:35
Good advice, I have rarely recovered any rent arrears, I was just glad to be rid of them.
Member Since September 2023 - Comments: 335
5:21 PM, 19th February 2024, About 2 years ago
Reply to the comment left by J CHAPMAN at 19/02/2024 – 10:43
If a section 8 is served the council don’t have to re house her it is deemed she has made herself homeless.