landlord / tentants rights

[annsummers]

We have just started renting a house on a 6 month contract which ends 1st December after moving in on 2nd June. The landlord has got into financial difficulties and is having to sell the house to avoid banruptcy. However, we have now got a mortgage and wish to buy but unsure where we actually stand. Buying a house can be a lengthy process and having young children who start school in september (aged 5 & 3) i cannot risk the option of moving more than is necessary to other schools. Is anyone able to give me any advice on what may happen, our rights etc.

[themas]

As tenants you have no rights against the landlord's mortgage lender. If they repossess the house you can be evicted without being able to stay until your six months is up.

If you want to buy the house, you need to agree a price with the landlord & make quite sure that his mortgage lender is willing to delay repossession to allow time for the sale to complete. Whether they will do this probably depends on how much arrears there are on the mortgage, & on the lender's policy.

[annsummers]

We are in a position to buy but not this house we are renting as its too much over our budget. My main concern is what length of time he can give us to leave the property as we obviously need to have a house to move to.

[Peter Pedant]

Oh that is a pity - you might get a good deal on the house you are in.

IF he goes bankrupt you could get it at a fire sale price.

are you sure you cant buy it?
You see, with a mortgage and nowhere to sell, there is no chain and this almost counts as a cash sale.

And everyone knows what you do to cash - grab it as soon as possible, so you knnow he might be inclined to sell at a discount.

DEFINITELY worth a punt. And if he says, oh butit is worth XYZ and I am gonna wait [wh he can't if he is facing the creditors] then you have a good idea why he is going backrupt.


It is difficult to complete on a contract in less than six weeks once he has found a buyer
(auctions are different.....are you sure you cant buy this house ? you really will get the best deal poss)


as you say - is anyone able to give me advice on my rights ....you dont need rights in a fire sale baby, get out there and buy !

[themas]

If your 6 month tenancy is (as Is almost certain) an assured shorthold, then the landlord cannot evict you himself before the 6 months is up unless you breach the terms of the tenancy (e.g. by not paying the rent). So if he has put the house on the market any potential buyer should be told about your tenancy & its end date by the agents. At the end of your 6 months you will have to leave (whether you have bought anywhere by then or not) if he gives you the correct notice.

This is quite different from what happens if the house is repossessed (see my previous post). Also, if he is made bankrupt the Official Receiver becomes the effective owner of the property & a sometimes complex & time consuming process starts which could end up with the house being sold. This process might last until after your 6 months is up, but there is no certainty about it.

[annsummers]

Thanks for your help and advise. What would happen if we just left and bought a house before the tenancy ended?

[themas]

You have signed a contract for 6 months, and the landlord can keep you to that, so if he still owned the place and did not re-let it you would be liable for the rent for the rest of the 6 months. (You would have to give the necessary notice to terminate the tenancy at the end of the 6 months.)

However, if the landlord re-lets or sells then you should have no responsibility for paying rent from the date this happened, because you would not have the place available to you.

But if you could reach an agreement with the landlord to leave earlier that would be OK - but get it in writing.

[cascarelli]

You can either stay put and see out your 6 month tenancy - it sounds like the LL is selling with you as a sitting tenant, or you could offer to move out now. You don't have to give notice at the end of the 6 month period if you don't wish to, your tenancy will end naturally.

It may help your LL if he's selling if you moved out now as he would get a far higher price for the property without a sitting tenant. You may even get a financial inducement to leave early.

If you haven't already then speak to the LL about his plans and yours. You may find that you can work something out to your advantage.