Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 4 weeks ago 48
I purchased a house last year which had a tenant on a 6 month AST living in the property. I agreed for the tenant to stay (this suited me as it was to be an investment property anyway) and issued my own AST. She has recently given notice and now moved out. The tenant left owing me 2 months rent (she received housing benefit and they pay in arrears, hence the debt) – the deposit was less than 1 months rent. The tenant is very amenable (at the moment) and has signed to agree I can keep the deposit towards the rent and they say they will pay the remainder.
Now comes the complication… The previous landlord did not protect the deposit – said they just forgot! My solicitor picked up on this during the purchase and so insisted that the vendors placed an amount in a holding account to compensate if the tenants claimed. I protected the deposit the day I took over the house. Now the tenant has left and is, to my knowledge, completely unaware of any of this. How long after termination of tenancy can they claim if they realise the deposit was not protected? The previous LL is aware the tenant has left and is asking for his money to be released, but I am wary!
Any suggestions would be gratefully received
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