Homeless Due To Tenant?

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    Homeless Due To Tenant?

    I´m in a bit of a pickle in that having taken a job abroad & therefore renting my home back in the UK, the company I was working for have gone bust.

    I have a limited savings that would allow me to stay abroad for no more than a couple of months.

    I obviously own & have a mortgage on my rented UK property but the second rental contract with the existing tenant does not expire until mid-October 2010.

    Now my problem being, I need to return to the UK to look for work with no further income available to me approximately 8 weeks from now.

    My tenant has been as good as gold but obviously my personal needs have to come first. Do I have any options at all or am I to be placed in the novel situation whereby I own a home but am essentially jobless and homeless?!

    #2
    It is sometimes difficult to believe that queries like this are genuine, but here goes anyway.

    First of all, please be clear that if you do end up homeless (which I don't expect you will), it will NOT be 'due to tenant', any more than it is due to me, or the man at the corner shop or next door's cat.

    You entered into a legally binding contract with your tenant to provide him with a property to live in until mid-October 2010. In return, he agreed to be legally liable for the rent for the whole of the rental period. Although you own the property, it is his home. It is not your home and you have no right to move back into it yet; parties to a contract cannot simply walk away from their obligations as and when their personal circumstances change. You would have taken a dim view had your tenant just upped and left in breach of the contract, wouldn't you?

    Unless your T is keen to move out early (and there is presumably no reason to think he is), you cannot claim your house back before the end of his fixed term, and if he decided not to move out at that point, you would be obliged to apply for a court order for possession and if need be, instruct bailiffs. This process can take several months. You could offer your T a large financial incentive to vacate early, but be very careful how you word any such offer, otherwise you may leave yourself vulnerable to being accused of illegal eviction/harassment, which is a criminal offence.

    I suggest you use the rent he is paying you to rent somewhere else yourself until you have lawfully regained possession of your property by serving the appropriate section 21 Notice Requiring Possession, etc. There is an oversupply of rental properties in many parts of the country at present.
    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

    Comment


      #3
      Thank-you for your response.

      I am sorry to say this is indeed a genuine query.

      Basically due to the uncertain nature of working abroad from many points, not least the fact I wanted a route back to the UK if things didn´t work out, it seemed sensible to rent my property rather than sell.

      Obviously I wouldn´t have expected the company I was working for to go bust so didn´t really consider that a pitfall of renting as I had every intention of staying abroad to work.

      Unfortunately the rent I receive only covers around 65% of the mortgage on the property so renting an alternative property in the interim while also topping up my mortgage isn´t really a viable option.

      I´ll look for a little more advice but it is beginning to look like I truly could end up in a bit of a fix!

      Comment


        #4
        Originally posted by mind the gap View Post
        It is sometimes difficult to believe that queries like this are genuine, but here goes anyway.

        First of all, please be clear that if you do end up homeless (which I don't expect you will), it will NOT be 'due to tenant', any more than it is due to me, or the man at the corner shop or next door's cat.

        You entered into a legally binding contract with your tenant to provide him with a property to live in until mid-October 2010. In return, he agreed to be legally liable for the rent for the whole of the rental period. Although you own the property, it is his home. It is not your home and you have no right to move back into it yet; parties to a contract cannot simply walk away from their obligations as and when their personal circumstances change. You would have taken a dim view had your tenant just upped and left in breach of the contract, wouldn't you?

        Unless your T is keen to move out early (and there is presumably no reason to think he is), you cannot claim your house back before the end of his fixed term, and if he decided not to move out at that point, you would be obliged to apply for a court order for possession and if need be, instruct bailiffs. This process can take several months. You could offer your T a large financial incentive to vacate early, but be very careful how you word any such offer, otherwise you may leave yourself vulnerable to being accused of illegal eviction/harassment, which is a criminal offence.

        I suggest you use the rent he is paying you to rent somewhere else yourself until you have lawfully regained possession of your property by serving the appropriate section 21 Notice Requiring Possession, etc. There is an oversupply of rental properties in many parts of the country at present.
        Can OP not use section 8 ground 1 to gain possession after the first 6 month provided T was told this was a posibility prior to signing? OP does not state when the term stated so not sure if applicable

        Comment


          #5
          It might be worth pursuing this ground, but you need to give two months notice:

          Mandatory Grounds for Possession:

          Ground 1 - This ground can be used where a landlord (or his spouse) has occupied the dwelling as his only or principle home at some time, and having given notice of his intention to return, now wishes to do so. Successors in title may also use this ground provided they did not purchase the dwelling.
          http://www.landlordzone.co.uk/ground...possession.htm
          Allow tenants to protect their own deposits. I want free money when they do it wrong

          Comment


            #6
            Hello "thesaint".
            Thank-you for your response.

            Yes I´ve looked at that under Grounds 1 (b) I believe.

            The Tenant has originally rented the property from me since October 2009-April 2010 initially.

            After that 6 month period I was happy to renew but did mention at the time of renegotiating the contract that should I wish to return to the house what would I need to do?

            The letting agent informed me all I´d need to do was give two months notice.
            However having acted based on this information I am now being told that the information given to me wasn´t correct & I would indeed have to wait until October 2010.

            I am assuming the fact I have renewed the contract for a further 6 months in April means I am unable to action this until at least 2 months prior to October to guarantee re-admission to my property at the end of the contract.

            Comment


              #7
              Originally posted by bobbo View Post
              Hello "thesaint".
              Thank-you for your response.

              Yes I´ve looked at that under Grounds 1 (b) I believe.

              The Tenant has originally rented the property from me since October 2009-April 2010 initially.

              After that 6 month period I was happy to renew but did mention at the time of renegotiating the contract that should I wish to return to the house what would I need to do?

              The letting agent informed me all I´d need to do was give two months notice.
              However having acted based on this information I am now being told that the information given to me wasn´t correct & I would indeed have to wait until October 2010.

              I am assuming the fact I have renewed the contract for a further 6 months in April means I am unable to action this until at least 2 months prior to October to guarantee re-admission to my property at the end of the contract.
              Ground 1 cannot be used in the first 6 months of an AST but I would issue the section 21 now to ensure possession at the end of term in October

              Comment


                #8
                Originally posted by matthew_henson View Post
                Can OP not use section 8 ground 1 to gain possession after the first 6 month provided T was told this was a posibility prior to signing? OP does not state when the term stated so not sure if applicable
                I don´t believe so?
                The initial contract was 6 months, which was renewed in April for a further 6 months.

                I am assuming this means I cannot obtain access to the property until October. As I´ve said, it´s a shame because the Tenant has been as good as gold, I´m just in a bit of a precarious position stuck abroad financially now!

                Comment


                  #9
                  Originally posted by bobbo View Post
                  I don´t believe so?
                  The initial contract was 6 months, which was renewed in April for a further 6 months.

                  I am assuming this means I cannot obtain access to the property until October. As I´ve said, it´s a shame because the Tenant has been as good as gold, I´m just in a bit of a precarious position stuck abroad financially now!
                  I have to agree with MGT, it is a situation of your making, T has nothing to do with it.

                  Why did you renew the contract? there is no reason to as AST automatically become periodic tenancies at the end of the fixed term and that allows you the 2 months notice.

                  Strikes me you should get back to the UK ASAP and get yourself a job or at least get on benefits

                  Comment


                    #10
                    Originally posted by matthew_henson View Post
                    I have to agree with MGT, it is a situation of your making, T has nothing to do with it.

                    Why did you renew the contract? there is no reason to as AST automatically become periodic tenancies at the end of the fixed term and that allows you the 2 months notice.

                    Strikes me you should get back to the UK ASAP and get yourself a job or at least get on benefits
                    I wasn´t even made aware of this by my letting agent.

                    I renewed the contract because upon querying it with my letting agent, they themselves informed me that if I wanted to move back into the property all I´d have to do was give 2 months notice.

                    As it would appear, they have renewed it for 6 more months, even though I haven´t actually signed anything to this effect due to my being abroad.

                    Comment


                      #11
                      I do not know about letting law or getting people out early, so will not comment on that. I would want to ensure I kept T happy, otherwise the situation could get worse.

                      In light of previous misunderstandings, I would deal with the LA in writing, thereby less chance of misinterpretation.

                      Have you considered
                      1. looking at how you can reduce your outgoings PCM temporarily?
                      2. could you extend the term of the mortgage, reducing monthly payments?
                      3. is a mortgage holiday for 6 months or paying every second month for 6 months an option?
                      4. is the lender aware the property is let, how can they help you?

                      Not strictly LL/T advice so if considered inappropriate or irrelevant, please delete.

                      pm
                      Before acting on forum advice, you may wish to consult an expert, someone who has all the relevant facts, and who accepts liability for their advice.

                      Comment


                        #12
                        Originally posted by bobbo View Post
                        I wasn´t even made aware of this by my letting agent.

                        I renewed the contract because upon querying it with my letting agent, they themselves informed me that if I wanted to move back into the property all I´d have to do was give 2 months notice.

                        As it would appear, they have renewed it for 6 more months, even though I haven´t actually signed anything to this effect due to my being abroad.
                        Your agent has misinformed you about the implication of the six month renewal agreement, but you you nonetheless have authorised them to act on your behalf; it is my understanding that includes signing agreements. If you have written evidence that they told you you would only need to give two months' notice, you could possibly sue them for negligence but I doubt it would help much.

                        I think you really need to stop seeing the property as somewhere that you have 'first claim' to because you have lost your job, etc. At this stage you have no more right to live in it than me, or your Aunbtie Ethel in Brighton. The fact that you will struggle to pay your mortgage is not your T's problem, I'm afraid.
                        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                        Comment


                          #13
                          Originally posted by bobbo View Post
                          I wasn´t even made aware of this by my letting agent.

                          I renewed the contract because upon querying it with my letting agent, they themselves informed me that if I wanted to move back into the property all I´d have to do was give 2 months notice.

                          As it would appear, they have renewed it for 6 more months, even though I haven´t actually signed anything to this effect due to my being abroad.
                          A lot rests on whether the letting agent has actually renewed it on your behalf.
                          Ask for a copy of the tenancy agreement.

                          You have nothing to lose by asking the tenant to look for another property, and you helping with the costs of doing so.
                          It may work out cheaper for you in the long run.
                          Allow tenants to protect their own deposits. I want free money when they do it wrong

                          Comment


                            #14
                            Not being tied to a specific location of a family home could be an advantage when looking for a new job, you may find it convenient to rent a smaller property while looking for work, you should consider this before rushing to remove a good tenant.
                            I also post as Moderator2 when moderating

                            Comment


                              #15
                              Originally posted by thesaint View Post
                              You have nothing to lose by asking the tenant to look for another property, and you helping with the costs of doing so.
                              No! This is WRONG.. OP, please ignore it.

                              'the saint' : PLEASE STOP MISINFORMING PEOPLE. I am sure you are not doing this mischievously or maliciously, but the effect can be the same.

                              At this stage we must assume, until proved otherwise, that the T has a fixed term tenancy agreement which expires mid-October. For OP to start suggesting, as you advise, that T 'look for another property' before that could be construed as harassment/illegal eviction - which is why I suggested that any offer of a sweetener must be very carefully phrased and not appear to 'pressure' the T into moving out if he would prefer to stay (as we must assume he does).
                              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                              Comment

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