Leased flat to a limited company now dissolved – What do I do?

by Readers Question

7:14 AM, 18th November 2016
About 4 years ago

Leased flat to a limited company now dissolved – What do I do?

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Leased flat to a limited company now dissolved – What do I do?

I have leased a flat to a Limited company who are a lettings company on a 5-year lease agreement for £1000 per month. After a few months, I discovered that they have dissolved this limited company and declared it to HMRC as dormant.LTD

They have done a HMO with my property and I want to take it back. As far as I understand it, her company lease is now nul and void.

Can I enter the property and change the locks etc? and what about her tenants who are on lodgers agreements.

What is the correct process?

Many thanks

Paul

 

Comments

Gary Nock

14:28 PM, 19th November 2016
About 4 years ago

Deposit wise if the tenancys are in the currently trading companies name then they should have been protected. Note I say should have. So legally she is the landlord and liable for penalties if not protected. Although it goes against the grain the new tenancies you sign with the tenants will probably need to be without taking a deposit unless the tenants want to pay it twice! The old tenancies with the dodgy limited company have ended with your new tenancies and thus deposits should be repaid to the tenants by the Ltd Company.

Paul McCarthy

14:32 PM, 19th November 2016
About 4 years ago

Reply to the comment left by "Gary Nock" at "19/11/2016 - 14:28":

Thx for reply Gary

The existing tenants have deposits with another of her companies, live a trading. I will not take a deposit but have asked the tenants to ask for their deposits back and if they get them then to pay it to me so I can do a DPS for them

AND their deposits are NOT protected I found out (from an employee who works there) what could they do against her? if they sue she can simply close the company down as usual!

Question. In an HMO, do tenants get an AST contract? or what?

H B

17:19 PM, 19th November 2016
About 4 years ago

Reply to the comment left by "Paul McCarthy" at "19/11/2016 - 14:03":

”AND lastly. She invoiced me on 5 other properties she managed for me, and charge us VAT. Today I discovered she is not registered for VAT. Fraud? Interested to get opinions..”

That is clearly fraud. HMRC should be made aware - they will prosecute. Report them.

It is really sad that housing - one of the most basic necessities - is often exploited by others with less than honourable intentions.

Rob Crawford

21:22 PM, 19th November 2016
About 4 years ago

Reply to the comment left by "Paul McCarthy" at "19/11/2016 - 14:32":

Hi Paul, I would certainly make efforts to recover the deposits. I would also put new AST's in place and ensure you conduct the R2R requirements and issue EPC, Govt's rent guide and deposit prescribed info & gas safe certs. Otherwise any incorrect administration previously or the late protection of the deposits may still bite you later. If the company is dormant it is still a company and will still have directors. Making a company dormant is usually a means to protect it's name when not trading. Before you do anything, I would seek legal advice asap.

Paul McCarthy

8:50 AM, 20th November 2016
About 4 years ago

Reply to the comment left by "Rob Crawford" at "19/11/2016 - 21:22":

Thanks for your reply Rob

The company was dissolved in Dec 2015. Gone!

Why would I be liable for deposits? She did NOT register the deposits I am told.

The contracts that she gave to them was called " a lodgers agreement".

The company who leased from me is dissolved BUT the company who rented to the tenants is a totally different company name (same people)

I'm changing locks today and issuing them all with a new AST, I hope this is the best route

I'm not wasting money on solicitors as the company is dissolved so there is no entity anymore, so no one can sue me etc... as long as the tenants are ok I figure why should there be a problem!

THE only problem is the tenant deposits. I have told them to ask for it back, which will be interesting. If no return we decided to set aside an amount of their rent each month to accumultae a deposit refund for tem in 12 months which I think is more than fair...

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