Months rent in advanced after change of LL

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  • Months rent in advanced after change of LL

    A scenario I am advising a friend on.

    A tenant signs an AST in July 2004. The landlord requests £1000 which is one months rent in advance (£500) and deposit of (£500). Tenant is given a recipt showing what the money is for.

    Come mid-November 2007 the property is sold on with the same tenant still in place. The new landlords get the tenant to sign a new AST. The solicitors for the new landlord arrange for the £500 deposit from the old landlord to be placed in a TDS for the new landlords. The £500 rent in advance is over looked.

    Tenant raised the issue of the £500 rent in advanced paid to old LL. New LL have consulted their solicitors who have written to tenant saying that the situation concenring the £500 in advance is nothing to do with the new landlords but is something for the tenant and the old landlord to resolve. The tenant has contacted old landlord who is less than interested in returning the £500 month in advance.

    My take on the situation is that this is something that should have been considered by the new LL solicitors when the sale agreements where being processed (at the same time that the deposit was passed over). Come the last month of the tenancy (either periodic or end of fixed term) I think the tenant doesnt have to pay the last months rent, as its already been paid in advance and its down to the new landlords to try and recover it from the old landlord.

    The new landlords are currently under the impression that rent is being paid one month in arrears rather than the usual one month in advance.

    What do you think?

  • #2
    Does Tenancy Agreement reserve rent monthly in advance?
    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).

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    • #3
      We need to look at the facts which I understand are as follows.

      2004, T signs lease paying rent in advance and deposit.

      2007 house changes ownership; T signs new lease. (I presume this all happened on the same day?)

      £500 deposit has been correctly treated - all three parties (L, old L and T) agree.

      New L has new contract with T that states on what basis L receives rent from T.

      T had contract with old L stating on what basis T paid rent.

      Current AST is with new L - who has nothing to do with old AST or old L.

      Tentative conclusion: If T thinks he paid old L too much rent then he has to recover this from old L.
      The contents of this note are neither advice nor a definitive answer. If you plan to rely on this, you should pay somebody for proper advice.

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      • #4
        Will get back to you.

        Comment


        • #5
          Re Grange's post: old L and new L may have arranged, contractually, how the rent/deposit would be handed-over or apportioned.
          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


          • #6
            Originally posted by jeffrey View Post
            Re Grange's post: old L and new L may have arranged, contractually, how the rent/deposit would be handed-over or apportioned.
            A fair point, but in that case I should hope that new L's solicitors would be aware of it...
            New LL have consulted their solicitors who have written to tenant saying that the situation concenring the £500 in advance is nothing to do with the new landlords but is something for the tenant and the old landlord to resolve.
            The contents of this note are neither advice nor a definitive answer. If you plan to rely on this, you should pay somebody for proper advice.

            Comment


            • #7
              Tenant has signed new AST with new LL, therefore advance rent paid under previous contract is between the old LL and the tenant.

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