Landlord Bankrupt

Garlic Suplmnt

Hi, I've been renting an apartment for about 10 months, lease expires in September. I've received a letter from a solicitor that states that they have been appointed as receiver, as it appears my landlord is now insolvent. They've told me to cease any further payment to the landlord, and that they will send on new account details for further rent payments - still waiting for this.

They are asking for copies of my lease, plus the receipt for the deposit. Short story, I cannot find either of these, despite having torn the place assunder looking for them over the last few days. Is it likely I won't see my deposit now, and is it likely we could be shipped out in the near future?

I initially figured that it shouldn't be too big a deal, as the landlord would no doubt have copies of these. However, if he's looking down the barrel of bankruptcy, I doubt my deposit is a concern of his!

I'm thinking of just moving out at the end of the month that the deposit will have paid for in the absence of any rent payment (if that makes sense?), that way everyone breaks even?

Any advice appreciated, feel free to ask any further questions as I may not have explained this situation too well!

Cheers

Michael D Not Higgins

The deposit is still to be received from the landlord. It is not owed by the receiver.

You cannot use your deposit in lieu of rent. The correct process is paying your rent and receiving the deposit back after the end of the tenancy. It is not a rental payment, it is a security deposit to cover loss or damage above normal wear and tear.

davo2001

Michael D Not Higgins wrote: »

The deposit is still to be received from the landlord. It is not owed by the receiver.

You cannot use your deposit in lieu of rent. The correct process is paying your rent and receiving the deposit back after the end of the tenancy. It is not a rental payment, it is a security deposit to cover loss or damage above normal wear and tear.

Yes, in an ideal world this is what would happen, but we don't live in an ideal world.

OP, take your own advice, leave as soon as you can and keep the last months rent as the deposit.

Michael D Not Higgins

Mod note: No illegal advice please.

Michael D Not Higgins

If your lease is for one year, then you can still stay without any fear of termination until it runs out. At that point the receiver may issue a notice of termination based on one of the criteria of termination for Part 4 tenancies (most likely intention to sell). At that point you will have to be given 6 weeks notice.

Alternatively, it might suit the receiver to have you there for a while. You might be able to negotiate a reduced rent in exchange for being flexible on the arrangements for viewings to sell the property and flexible on move out date. You should speak to the receiver again to gauge how they want to play it and see if you're looking for a new place in 2 months or not.

El_Dangeroso

Have seen two other people go through the same process and not get their deposit back. As creditors go you'll be at the very back of the queue.

Mrs OBumble

If you cannot find your copy of the lease or deposit receipt after only 10 months in the place, then I would be thinking that you didn't care so much about getting the deposit back in the first place.

What's the rental market like in your area - do you think that you will get another place without a landlord reference.

jake_boy_men

Garlic Suplmnt wrote: »

Hi, I've been renting an apartment for about 10 months, lease expires in September. I've received a letter from a solicitor that states that they have been appointed as receiver, as it appears my landlord is now insolvent. They've told me to cease any further payment to the landlord, and that they will send on new account details for further rent payments - still waiting for this.

They are asking for copies of my lease, plus the receipt for the deposit. Short story, I cannot find either of these, despite having torn the place assunder looking for them over the last few days. Is it likely I won't see my deposit now, and is it likely we could be shipped out in the near future?

I initially figured that it shouldn't be too big a deal, as the landlord would no doubt have copies of these. However, if he's looking down the barrel of bankruptcy, I doubt my deposit is a concern of his!

I'm thinking of just moving out at the end of the month that the deposit will have paid for in the absence of any rent payment (if that makes sense?), that way everyone breaks even?

Any advice appreciated, feel free to ask any further questions as I may not have explained this situation too well!

Cheers

easy way around this , pay the receiver the rent ( its usually through an appointed agent ) until the property is sold ( probably be sold at auction ) but withhold a final months rent in order to cover your deposit , no way will the receiver follow you once the bank have sold the property

you cannot be be booted out any quicker because of this so id stay on

Claw Hammer

Once you pay rent to a receiver you are entitled to your deposit back. The RTB will force it. There is no need for the receiver to have a copy of the lease. I wouldn't give them a copy of it even if i had it.

MarkAnthony

The receiver is usually appointed as an agent of the landlord. The landlord remains liable for any breaches so I take issues with two points in this thread.

(i) that you're safe assuming you can find the lease to prove it's a 12 month tenancy/you can avail of Part IV rights. Yes technically you should be able to but you'd be trying to enforce this against the LL who no longer has control/any money to pay you damages. Now a responsible receiver is unlikely to force you out and engaging with them is very good advice but I suggest getting out of dodge sooner rather than later unless they are willing to contract with you in their own capacity.

(ii) Paying money to the receiver will get you the deposit back. If the rent isn't covering the month to month expenses of the property then the receiver has no money to give you your deposit back, your recourse it to the LL, who is bankrupt.

My advice to you would yield me a yellow or possibly red card so I suggest contacting Threshold or FLAC and see what they suggest. In short it's not panic stations but you should start looking to move IMHO.

Garlic Suplmnt

Mrs OBumble wrote: »

If you cannot find your copy of the lease or deposit receipt after only 10 months in the place, then I would be thinking that you didn't care so much about getting the deposit back in the first place.

This made me take a long hard look at my life

Thanks all for the advice, card warranting and non-card warranting! The guy I;ve been dealing with on the receiver side seems sound, but he seems in no rush to follow up with me on anything. I've left a couple of voicemails to discuss the missing lease and receipt, but not a dickiebird yet. We'll see what happens ... I'll post the outcome here in case it's useful to anyone in a similar position

Thanks again all

Thoie

Weird question, and OP, I'm not trying to worry you, I'm sure your situation is above board.

With so many bankruptcies, and receivers going around, is there any way to verify that a letter you get saying "landlord bankrupt, stop paying him and pay this account instead" is real?

MarkAnthony

Thoie wrote: »

Weird question, and OP, I'm not trying to worry you, I'm sure your situation is above board.

With so many bankruptcies, and receivers going around, is there any way to verify that a letter you get saying "landlord bankrupt, stop paying him and pay this account instead" is real?

Excellent question.

There is no qualification* or regulation of receivers (IIRC may have changed in the 2014 Act), however in practice they are usually an accountancy firm or solicitor. Once you verify that the person concerned is indeed who they say they are (through the law society for solicitors) and make contact with them you can be fairly certain. They should also have the relevant paperwork for you to have sight of.

*there are some requirements like not being an undischarged bankrupt etc. but in general anyone can e a receiver.

Garlic Suplmnt

MarkAnthony wrote: »

Excellent question.

There is no qualification* or regulation of receivers (IIRC may have changed in the 2014 Act), however in practice they are usually an accountancy firm or solicitor. Once you verify that the person concerned is indeed who they say they are (through the law society for solicitors) and make contact with them you can be fairly certain. They should also have the relevant paperwork for you to have sight of.

*there are some requirements like not being an undischarged bankrupt etc. but in general anyone can e a receiver.

Hi, it's all pretty kosher. The receiver is from one of those supermarket solicitors firms, employing about 800 people. I recognised them immediately as I've dealt with them a few times in work in the context of unrelated FOI/Data Protection requests over the years.

MarkAnthony

Obviously be sure it's them and not someone claiming to be them.