AST landlord now bankrupt; Insolvency Practitioner acts

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  • AST landlord now bankrupt; Insolvency Practitioner acts

    We took out a AST (6m) in March this year, and handed over one months rent and a substantial deposit (£1000). We subsequently paid our rent by standing order monthly.

    We recieved a "Notice of Eviction" from the County Court in June, as my Landlord had failed to pay his mortgage.

    The Notice of Eviction, was quoshed a month later, about 2 hours prior to the execution time.

    We subsequently learnt that our Landlord was made Bankrupt in early July and we were advised by the official reciever to put our rent money to one side, but not to pay our Landlord direct.

    I have now recieved a letter from his insolvency practitioner asking for 4 months rent (we actually owe 3).

    It looks very unlikely that we will get our deposit back, and we incurred some expense during our notice of eviction period (about £600), as we were preparing to move house at this time.

    Should I pay up, and then try to recover our money, or send the difference ?

    Or do nothing ?


  • #2
    I'm sure others will have better, more qualified ideas than me, but I would be most concerned with my deposit. First, I would write to the insolvency practicioner and put them in the picture with the rent you really owe. Ask what is your landlord prepared to do about your expenses because of his threatened reposession? What guarantee is there that you will get your deposit back when you eventually terminate your tenancy? Unless you get satisfactory answers to these questions, I regret I would suggest that you consider terminating your tenancy and moving elsewhere. You should then pay your landlord the rent that you owe less your deposit, provided that your property is left in a satisfactory, clean condition and you have done no damage. After all, he very nearly breached his contract with you by causing you to be unfairly evicted during the fixed term of your AST. With regard to your expenses, provided you can justify them with receipts you could deduct this as well and then be prepared to defend a small claims court action for their repayment - if your ex-landlord can afford the fee. In the meantime, as a gesture of good will you could pay the rent you owe less these two items.

    Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.


    • #3
      Thanks P.Pilcher, I will consider this.


      • #4
        Are you particularly tied to the house? Is there any big reason why you don't want to move? I only ask because in this situation I would be looking to leave fairly sharpish anyway.
        Any posts by myself are my opinion ONLY. They should never be taken as correct or factual without confirmation from a legal professional. All information is given without prejudice or liability.


        • #5
          No, I'm not tied to the house, and we are looking to move soon to a property that we have hopefully bought.

          I'm more concerned about the money issue. I'm not trying to wriggle out of what I owe, but by the same rule, I don't want to end up out of pocket, for what has been a poor experience of renting.


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