Tenant arrears on property bought at auction

by Readers Question

14:12 PM, 25th February 2015
About 4 years ago

Tenant arrears on property bought at auction

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Tenant arrears on property bought at auction

I bought a two bed flat at auction in Dec 2014 with tenant in occupation on an AST since Dec 2009. The tenant has been holding over since the original 6 months period.

When my purchase completed I was charged 3 months rent arrears, undisclosed at the time but I had to pay. The tenant paid me the rent arrears in December after some protracted negotiations but has since failed to pay January and February 2015 rent.

They have failed to return calls, letters and refused to answer the door to discuss. I fear they will not pay March rent now. I want to work with the tenant and have posted a letter offering to help but have had no reply. I have also found out they are in breach of two conditions on the AST, they have a dog – no pets allowed and run a business from the flat, again breach of AST.

The original AST is in the name of the previous landlord /owner who was repossessed, the property was sold at auction by receivers. The tenant has declined to sign a new AST with me as the new owner / landlord. I realise I can serve section 8 and or 21. Is there anything else I can do to secure / gain possession ? One agent advises as there is no AST between myself and the tenant I can simply gain entry and change locks is this true ?

Finally what would be best advice to recover rent arrears ?

Thanks

Davidauction



Comments

Neil Patterson

14:16 PM, 25th February 2015
About 4 years ago

Hi David,

Did the solicitor not get the tenancy transferred over to you??

If this turns tricky I would suggest you contact Paul Shamplina and Landlord action >> http://www.property118.com/member/?id=190

wayne carson

15:02 PM, 25th February 2015
About 4 years ago

To resolve the landlord issue, simply serve a section 47/48 and as long as the land registry title tallies with the 47/48 notice then you will have no worries. You don't have to "transfer the AST over to you. The terms & conditions still apply it is simply a matter of notifying the tenant of who the new Landlord is and the new revised payment instructions for rent. (unless you have already done this)

In relation to the arrears I don't understand why you would want to keep a tenant that doesn't pay rent? are you a charitable organization?

If not simply evict them. i think the only problem you may face here is in relation to the deposit if one was taken. If the Housing Act 2004 was not complied with then you will struggle to evict and also may face the possibility of counter claim for failing to register the deposit. Unfortunately, conveyance companies are not current with deposit regulations and this issue is frequently not resolved during the property transfer transactions. I would suggest you check the three schemes and see if it has been registered under the details of the existing tenancy agreement. If the AST states a deposit has been taken you need to resolve this before you can proceed with any action against the tenant. Speak to the schemes for advice on this but either way i am feeling that you may have to follow the resolutions laid out in S215 of the HA 2004.

Don't get hung up on the dog thing, unless it is a menace or dangerous i've yet to see a judge grant possession based on someone getting a dog! Too much evidence required to evict on a discretionary ground. Stick to rent arrears and /or section 21. the business one may be worth pursuing as this will be easier to evidence if they have registered the company against the property.

Gary Nock

17:19 PM, 25th February 2015
About 4 years ago

Section 8 Notice as they are two months in arrears. Deposit protection non-compliance only affects Section 21. Under no circumstances change the locks as you breach Protection From Eviction Act 1977. Don't muck about with them.

wayne carson

18:52 PM, 25th February 2015
About 4 years ago

Counter claims against non compliance can be brought against the landlord regardless of what route taken for the eviction. Fail to register means open to claim. I have even seen the no win, no fee lawyers walking up and down roads where agents mass asking people if they rent and if they paid a deposit. You can be claimed against Even post eviction after gaining a successful eviction having complied with s215.

Michael Barnes

20:48 PM, 26th February 2015
About 4 years ago

Reply to the comment left by "wayne carson" at "25/02/2015 - 18:52":

There can be a counter claim if deposit protection legislation has not been complied with, but it does not invalidate S8 notice like it does a S21 notice. Rent arrears is a mandatory ground.

I would issue S8 notice now, then determine position with respect to deposit.


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