12:05 PM, 9th September 2021, About 2 months ago 5
I purchased a property with a sitting tenant. The vendor (previous landlord) set up an escrow account as insurance against rent arrears. For various reasons I decided to give the tenant the benefit of the doubt as I was aware of some issues that were in the process of being resolved. The tenant is now receiving some housing benefit, but we are almost 6 months along and they still have some arrears to pay off.
The access to the escrow account expires soon and I have decided while I can to use it to bring the rent up to date. However, I am advised by my managing agent that this will reset the clock in terms of the amount of arrears required to issue a section 8.
A colleague has advised me that using the escrow account may not equate to the tenant paying their arrears, as the money is not theirs. In other words, the tenant will still technically owe the outstanding rent, even though the payment from the escrow account has made up the shortfall.
I cannot find any information anywhere to confirm this, indeed I am doubtful that this is the case. I would be grateful to hear from anyone who has experience with this.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|