Missed rent payments. I can't pay it.

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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.

I don’t think anyone in their right mind would give you a battering OP. You’ve had a horribly tough time.

I would get CAB (or Shelter if they offer a service) to help you with any written responses.

Other than that, I wouldn’t worry about it, what will happen you will agree a small payment each month that you can afford.

She definitely should try claim it from the estate agents.

The landlord has been paid by his insurance so she doesn't owe any more money though.

The landlord tenant default insurance is specifically for when tenants are made redundant or are ill or 'fall on hard times' it pays out from the month the stopped paying to the end of the agreement (up to £50,000). The contract has been fulfilled by the insurance so there is nothing more to pay.

The only option the landlord would have is to take the tenant to small claims court over the loss of rent, but why would they pay out to do that when the tenant has got no money and the landlord has already been paid, it's fraudulent to try and now obtain that money from OP so wouldn't even make it through court, it's all bluster.

The property has been sold. The tenant moved out. Those two actions together indicates both parties consider the tenancy over. Once the landlord went into the property after the tenant moved out, had viewings without giving notice to the tenant, he was acting as if the tenancy was over. The actions of both parties indicate implied surrender agreed by subsequent actions.

There's one main issue here. A fixed term tenancy is exactly that and notice cannot be given during the fixed term to end the tenancy within the fixed term unless there is a valid break clause exercised in accordance with the terms of the tenancy agreement or by mutual agreement. Op doesn't give an accurate timescale as to this so it's difficult to assess. But the landlord's actions are a bit odd.

If the ll successfully claims from the insurance that will be the end of the matter as the landlord cannot enrich themselves by being paid twice. The insurance company is unlikely to seek to indemnify themselves by going after the op. People very rarely stop paying rent for no reason. It's usually either they can't budget or they don't have the money and often a combination of both. Why would the insurance company issue proceedings against someone with no money. They don't bother ime.

With all due respect, the OP hasn't got to clarify shit, but:

The sale of the property went ahead before our 6 month break clause. That break clause is in 2 months time.

This is what I was referring to, it's in one of her replies, some tenancy agreements have them, some don't, this one obviously did so they could have been served notice to leave after 6 months anyway.

That's horrible OP. I would have let you give a month's notice in your circumstances. Time to pack up and leave without rush.

To anyone reading, Mcmillan caseworkers are usually pretty good so self refer if you have cancer and are in financial difficulties. They can get grants to help to pay rent and other expenses, help with benefit applications including uc and pip, and help with budgeting.

Get in touch with Shelter charity which is connected to Citzens Advice bureau agency,

they act as a go between your Landlord and yourself,
they are pretty good, I have had support a few times with them in the past,

also get financial budget advise , with a good charities, that deals with low income issues for e.g citizens Advice bureau,
they can also act as a go between landlord and yourself, to sort out a reasonable payment plan offer ,grounded in reality , to put in place too.

Also they will find out on your behalf if you are entitled to any social security benefits Allowance,

oh I see what you mean, they asked to surrender but the landlord refused so not a mutual surrender as such, but in practice it has now been resolved. The landlord being paid out has fulfilled the tenants obligation to pay.

It could be the case that instead of being a heartless bastard he knew if he surrendered the agreement he wouldn't be paid out by the insurance for the full term of the contract, and it made more sense for him to claim on his insurance so he could get full 'missed' rent payments up to when the house was sold.

Yes, a business decision that may have helped both parties.

The thing is, going via an agent you don't know what the landlord has told them. The landlord may have lots of properties and don't know if he was asked to renew your tenancy.

Regardless, OP without reading all the correspondence, it just seems weird the property was sold with sitting tenants.

I would however get proof that there are people living there - can you take photos?

It doesn't sound like the landlord is going to come after you.

But make sure to get the deposit released.... and I would be having words with the estate agent which you signed the contract with.

Personally I would be knocking on the door of the new owners but I know you might not want to do that.

It may also explain why he was in such a hurry to get a signed 12 month agreement in place 4 days before announcing he was putting the house up for sale too. He knew if it was all going to go tits up it would be after he told them about the house sale, some tenants would have refused to move and stopped paying rent immediately, the insurance he's referring to covers you for missed contractual rent and it also covers you to evict tenants if they refuse to leave, and ALL subsequent legal fees, he was never going to be out of pocket.

He still should have let them surrender though, or at least given them a, "no I can't possibly let you leave" .. wink, wink. Would have saved them a lot of aggro.

Thanks everyone. Some really good advise on here.
The landlord has 12 properties up and down the country. All of them are for sale /sold. I just hope to god none of the other tenants are being treated this way.

I'll await to see if the insurance company get in touch.

This sounds like an awful situation all round. Only MN though would have someone pounding OP about just not being able to afford rent or asking why they aren’t working whilst being in treatment.

honestly let your partner get some legal advice and talk to shelter etc, and you just forget about it. You’ve got FA that they can take, you’re going to be living with no cured of cancer and frankly they can do one.

yes you broke the contract but you also made everyone’s life a lot easier, your first thought was, move out we can’t afford it, not let’s squat here until we get turfed out. You did things on your own terms. No point worrying about it, just concentrate on your health

OP are you going to make a claim on your deposit?

Your landlord sounds like a dick who wanted to squeeze every bit of rent he couls out of the property until it was sold.

It was in neither of your interests to continue the tenancy - through no fault of your own you found you could no longe afford to live there, he wanted to sell the property and it is always easier to sell with vacant possession.

He should be grateful that you surrendered the property as soon as you realised you could not afford the rent as you were entitled to say put until evicted by the courts.