Financial problems- sale of tenanted house

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    Financial problems- sale of tenanted house

    Dear All,

    I have come into serious financial difficulties and I need to sell my flat ASAP so I can break even without declaring bankruptcy. My only problem, which is a big problem, I have tenants who occupy my flat.

    They have signed a 12Month AST Under Part I of the Housing Act 1988 as amended under Part III of the Housing Act 1996. The AST started on 1st January of this year, they are already 4 months in (nearly 4 months). I have a break clause ..(The landlord or the tenant can determine the Tenancy at any time after the expiry of six months from the commencement date by serving one months Notice in writing).

    I cant wait for two months because I will become bankrupt before this period. Is there any ways/ideas I can use to get these guys out. I'm so desperate now that I'm cant even sleep at night.

    I do have a scenario in mind which I need your advice on: I am thinking of telling the tenant(s) that I am in great financial difficulty and my personal property has been repossed along with my personal be belongings, as well the lodgers belongings. However, because I own two properties I have been given 14 days to sell and pay the balance. It's impossible to sell up in 14 days so I have no choice but to let the bank take back the property. Also, the bailiffs will enter the property and remove their items unless they have proof of purchase. My offer to them, I'm being honest and telling them upfront that they need to find another place to stay. I will return their deposit in full. 14 days remaining, 5 days after this period the bailiffs will enter the property. I will tell them that after this period I will be in no position to refund their deposit or any monies lost!

    Desperate times calls for desperate measures, I don't like doing this to any type of person, it's seriously cruel, but what can I do!

    Do you honestly think the above idea will work?

    Please please please help.

    Best Wishes
    Vegas

    #2
    Originally posted by Vegas View Post
    Dear All,

    I have come into serious financial difficulties and I need to sell my flat ASAP so I can break even without declaring bankruptcy. My only problem, which is a big problem, I have tenants who occupy my flat.

    They have signed a 12Month AST Under Part I of the Housing Act 1988 as amended under Part III of the Housing Act 1996. The AST started on 1st January of this year, they are already 4 months in (nearly 4 months). I have a break clause ..(The landlord or the tenant can determine the Tenancy at any time after the expiry of six months from the commencement date by serving one months Notice in writing).

    I cant wait for two months because I will become bankrupt before this period. Is there any ways/ideas I can use to get these guys out. I'm so desperate now that I'm cant even sleep at night.

    I do have a scenario in mind which I need your advice on: I am thinking of telling the tenant(s) that I am in great financial difficulty and my personal property has been repossed along with my personal be belongings, as well the lodgers belongings. However, because I own two properties I have been given 14 days to sell and pay the balance. It's impossible to sell up in 14 days so I have no choice but to let the bank take back the property. Also, the bailiffs will enter the property and remove their items unless they have proof of purchase. My offer to them, I'm being honest and telling them upfront that they need to find another place to stay. I will return their deposit in full. 14 days remaining, 5 days after this period the bailiffs will enter the property. I will tell them that after this period I will be in no position to refund their deposit or any monies lost!

    Desperate times calls for desperate measures, I don't like doing this to any type of person, it's seriously cruel, but what can I do!

    Do you honestly think the above idea will work?

    Please please please help.

    Best Wishes
    Vegas
    You could nevertheless sell it (subject to existing tenancy): there are companies whose advertisements purport to offer extra-quick below-value purchase completions. Ring some and see...
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      thanks Jeffrey,

      they offer 50k less then it's worth, that 50k loss is from my personal savings wiped of.

      Do you think the scenario mentioned earlier is a ludicrous idea?

      Comment


        #4
        Are you sure you have to wait until the 6th month to issue notice? If it is a six month break clause, you should be able to issue notice two months prior to the end of the sixth month, in order that the tenants leave at the end of the sixth month.

        At least, that is how all my contracts read.
        ASSUME NOTHING - QUESTION EVERYTHING!

        Comment


          #5
          Originally posted by Vegas View Post
          thanks Jeffrey,

          they offer 50k less then it's worth, that 50k loss is from my personal savings wiped of.

          Do you think the scenario mentioned earlier is a ludicrous idea?
          I would go down the route as advised by Jeffrey. There are truck loads of people out there who will sort out a deal for you and most will also offer a buy-back option.

          Have a look at www.singingpig.co.uk and select BMV property.

          I can't see any other way you can get around this ( within the law ) and still come away with no debt.

          Good luck!

          Comment


            #6
            Originally posted by Vegas View Post
            thanks Jeffrey,

            they offer 50k less then it's worth, that 50k loss is from my personal savings wiped of.

            Do you think the scenario mentioned earlier is a ludicrous idea?
            Yes, because Bank will not be able to sell at once; it will take a while. Bank would therefore probably be reasonably content with receiving T's rent payments for the time being, so I doubt that T would be scared into leaving if you floated your idea.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              Originally posted by jeffrey View Post
              Yes, because Bank will not be able to sell at once; it will take a while. Bank would therefore probably be reasonably content with receiving T's rent payments for the time being, so I doubt that T would be scared into leaving if you floated your idea.
              And I think that having alerted the tenants to your dire financial circumstances, the first thing they'd do is withhold the next months' rent in order to "reclaim" their deposit, which would not exactly help your situation...
              Last edited by Ericthelobster; 20-04-2007, 17:42 PM. Reason: typo

              Comment


                #8
                try advertising in your local paper as "investment opportunity"
                All posts in good faith, but do not rely on them

                * * * * * ** * * * * * * * * * * * *

                You can search the forums here:

                Comment


                  #9
                  Would it be too late to put it in a property auction?

                  Comment


                    #10
                    Thanks for all your help.

                    I've got a meeting with my bank manager this morning and hopefully sort something out.

                    I'm going to serve a Section 21b notice to get these guys out and do it legally.

                    Wish me luck!

                    Vegas

                    Comment


                      #11
                      Good luck!

                      Let us know how you get on.

                      Comment

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