Missed rent payments. I can't pay it.

[imogeneration]

Before this situation got to this point i posted in legal matters but didn't get a lot of traffic so shamelessly posting here. Sorry.

We rented a 2 bedroom house. Tenancy was up for renewal a last year. We renewed (with a rental increase) (blinded not knowing what was coming our way). 4 days after renewing our tenancy agreement we were told the house was going on the market. Obviously had we had known this was going to happen we wouldn't have renewed. In the mix of all of that, I was struck with a cancer diagnosis. Meaning out of work and no income. We told them after this, that we couldn't pay the rent due to the circumstances. I moved back to my parents annex. Because I was still under contract I am still liable for the rent. Because of how vulnerable my health is, I couldn't have viewings and people coming in and out as I had to, and still do, have to shield whilst having treatment. The landlord would not let us go. But we moved out. I know the advise is to stay until getting evicted but I tried to do the right thing and not hinder a sale as I doubt any non investors want to buy a house with sitting tenants. All viewings have been family viewings and AFAIK it's a family the house has now sold to.

We are now obviously months in arrears. The house is sold. The landlord has informed us he has claimed on his insurance to get the money back.

I'm just wondering what will happen next, what will the insurers do? I did speak to shelter and there are parts of the agreement that the landlord did not stick to which we were unaware of. I can't really say what they are as they're very specific and outing but the landlord did something outside the contracted agreement after he told us the house was going up for sale.

As you can imagine, it's an already stressful hard time. The cancer is here for the long run, but with the treatment and surgeries we are hoping for me to still have some time left. It's a cancer you sort of 'live with' as long as it stays stable after my initial treatment.

It's obvious that the landlord waited until renewing our tenancy before telling us so there's no gaps in the rent / sale. But due to it all happen in at once, we couldn't afford to stay. DX came days after the notice of selling the house. I needed to move back in with parents as I need help with DC at the moment after having treatment.

What happens now, will the insurer take me to court? Will they decline his claim for breaking the contract? Will I have to go to court?

Im expecting a battering for this. I know I've made some wrong decisions but I've had little to no choice. Not able to get social housing as DH earns too much. But without my wage, (main breadwinner) we simply could not do the rent. I tried and tried to come to a compromise but LL didn't want to know. Wanted the full rent (plus increase) and that was that. Didn't want to let us go. I just want to know what we'll expect in the next coming months now he has submitted a claim to the insurer. Deposit is in the correct scheme and the house was half managed by a letting agency.

Thank you.

@imogeneration
Make a claim for the deposit. You've moved out.
Have you been given the new landlords details?

It's also not 1/2 anything. On the contract who's it signed by?

I agree with writing everything out in regard to timeframes and ensuring you have any evidence.

How much is your deposit relative to rent arrears?

If the house is sold, the landlord has claimed on his insurance and knows he failed to follow correct procedure, I'd have thought chasing you is not worth the effort (though that perhaps depends if the property you were renting was £500 a month or 10k)

There is no false pretences.

Sorry no advice but am appalled by his disgraceful behaviour. He can't have it both ways, get the rent and sell it with viewings when you were gone. Hope it gets resolved in your favour soon and that is one big thing off your mind. xx

We don't have a new landlord, the house has been sold to a family AFAIK.

I'll make a claim on the deposit. I didn't think you could with missed payments :(

@sillyonehelps You'd think not disclosing he was selling would be but I guess it's just another way renters get screwed over.

How much are we talking? If the landlord has successfully claimed on the insurance then the insurer may have the right to come after you, but it would cost them to do it and it would be very bad PR for them. Plus, would they even know how to find you?

I wouldn’t worry, if it comes to it, speak to McMillan or cab.

Just over £3000 is outstanding.

i would guess it would cost far more than £3000 to trace and pursue you. If they do, you immediately let them know you’re a vulnerable individual and they have an obligation under fca rules to consider this. Then you ask them to right it off.

Honestly he'd be mad to chase you through the courts for this.

1. legal fees would be more than he would get
2. judges would look down their nose at his behaviour as well so no guarantees he would get it all.

Just ignore him

If you are asked to pay this debt you would need to write out a budget and offer to pay an affordable amount e.g. £5 a week. If the organisation took you to court you would only be ordered to pay an affordable amount. You could also choose to dispute the debt and see if they choose to take it to court.

You should be able to claim your deposit back. The rent arrears are separate I believe.

The "renting, buying, selling" forum on MSE has knowledgeable people as does the "debt free wannabe" forum if this becomes a debt you are chased for.

Please try to stop worrying. You need to concentrate on your health. If you have to pay this make a small affordable payment plan.

There is a specific type of insurance that you can take out with referencing companies that pay out in the case of non payment of rent, they then usually do chase the rent from the tenant.

The insurer may try to bring a subrogated claim but they won't just issue proceedings. They will write to you first. You then write back making all the points you can including your cancer and that you simply can't afford to pay and that your landlord's conduct (whilst legal) was underhand. It would be a PR disaster for the insurers to be seen to "bully" you and that may well see them off. But they may not contact you at all. Loss of rent insurance comes with a pricey premium which landlord has already paid so they may not feel too badly off all things considered.

2. no they wouldn't

No it's not. Because it doesn't affect anything.

I’m so sorry about your illness and hope you make a full recovery.

on the subject the post I think is misleading a lot of folks. Do I understand you renewed, then due to cancer diagnosis, you moved out and ceased paying rent, even though you were legally obliged to do so. The house was not sold at this point and you were not evicted? As such you owe the rent and this is what you’re concerned about?

@imogeneration yes you make a claim on the deposit to show you've left the property.

You have to start this process or else the deposit will just be left there.

Have you returned the keys? How was this done?

Has the house actually been sold and people living there?

If you get a claim letter of some sort from landlord or insurer, then worry about it. Until then, I'd forget about it and concentrate on the other things you have going on. Extra stress won't do you any good.

Why would you not have renewed? You needed somewhere to live.

Same here. I’ve seen unreasonable landlord bashing on MN before, but here I’m the tenant’s side.

There’s a few important questions

• How long was it between stopping payment and the house being sold? As you have not been given details of a new landlord and the current landlord no longer owns the property, the contact is invalid
• Were you advised that the agent would not accept you notice of two months when given
• when we’re the keys returned?

When did they sell OP? He can only recoup actual losses - so if he sold before the end of your tenancy you wouldn’t be liable for that part.

Ultimately if you haven’t got it, you can’t pay it.

It would have been better for OP to let it go into a periodic tenancy, so month by month, rather than the entire term of the new tenancy.

Op. Housing law is very specific.

please get specialist advice from shelter, housing solicitor, if you/ partner/family have house insurance or work you may have advice you can contact.

it will depend on what type of tenancy you had and signed.
generally tenant can give notice and is expected to pay rent during that notice period
did you take photos of empty flat (do you have before/after pics for deposit?)
you would have to be taken to court for payments, is landlord doing that?

hope your doing ok

@RedRosette2023 I assume they renewed because the rent was reasonable for the area, if not they would have looked elsewhere and gone month to month.

Just because your landlord sells it means nothing. Your contract is still valid and the new landlord can't kick you out before the end of the tenancy.

Housing security at the moment is non existent.