Deceased landlord

[Nextlevelnonsense]

I've tried to research this, and failed.
My young relative was an accidental landlord. Just one house. Nice tenants on a rolling month to month contract. Deposit protected.
Never had issues, except a couple of late payments that were resolved amicably.
Always maintained the property very promptly- until illness became suddenly terminal with awful prognosis. We had 2 weeks.

Relative is deceased. Unfortunately everything is going through probate due to speed of decline.
There is absolutely no question or issue over inheritance.
However, since learning of the death, the tenants have stopped paying rent.

It was a whirlwind, and we hadn't even thought to contact the tenants until after the funeral.
They were contacted before bank accounts were closed. We had legal representation arranged for probate, and were advised to give them bank details of the ultimate beneficiaries.
These are the elderly parents. They are clueless and distraught. I'm trying to help - but also clueless.

The tenants paid one month, then requested a new contract.
This has not been provided.

The intention is to sell as soon as reasonably possible.
They made a few requests for damaged carpets to be replaced (2 years old with burn marks that appear an iron was dropped). The carpets are fine - except their accidental damage.
The front door was sticking, and now has a gouged base from kicking it open.
It will need replacing.
There is an internal wall that has suffered some water damage (previous bathroom leak). This needs replastering - but not an urgent matter.
There is an issue with the boiler. It works, and is safe - but old - needs replacing before sale. They have hot water and heating, but a small water leak. The issues

We met with the tenants, and advised that we intend to sell. They were unsurprised, but asked if they could stay until spring.
They have DCs, We are sympathetic about difficulty finding a new home.
We agreed to this, providing that the rent arrears were cleared.
They had stated that the rent had been withheld because they thought they would fix the issues themselves,in lieu of rent.

I had not heard the previous conversations, so I'm not sure how this came about!
They haven't fixed anything regardless.
They agreed that none of the issues are problematic- and could wait until they vacate the property.
They agreed to clear the rent arrears (4 months). 2 months immediately, then the remaining 2 by month end.

This was a week ago.
Nothing has been paid, and we suspect that they don't intend to pay.
The elderly couple are understandably distressed and nervous. They want to end the distressing situation safely, legally and behave kindly towards the family.

I want to advise them of the least problematic way to proceed, without further impacting their mental health.
I'm happy to engage with the tenants, and deal with the logistics of situation.
If the wider family don't do something, they will be further taken advantage of.

Can anyone offer advice please?

I'm not an expert but after reading comments on here they need to get smart and legal. There's no being nice with these people. The law needs following properly.

Section 21 immediately. I know that's not what you want to hear but I'd be worried they renege and also don't move out. Courts post Covid are taking longer now and that will be time without rent but better to start now than 6 months down the line when they'll be even more behind. 4 months arrears plus the need to sell ought to be enough to get them out.

I do hope the deposit was in a proper scheme though or you do have problems. Shelter will advise them to stay put by the way or they make themselves intentionally homeless. So literally they will be there until bailiff time.
I would ring them and tell them if they do not pay the arrears by the 31st then you will be reneging your offer for them to stay until Spring, using the courts and furthermore will not be providing a reference.
A different tactic if you can afford it would be that if they leave now you will forego the 4 months owed and they get the deposit back but need to be out by (such and such) a date. Then change the locks pronto after they have gone.

The new owners need to evict the tenants in a proper manner - if they (or you) don’t know how to do this then get advice from CAB, Shelter, or a Solicitor. It will take many months. You can of course offer incentives for them to leave, but they have no obligation to leave until a Bailiff comes to the door with a court order. You could sue them for unpaid rent but this may not be effective if they don’t actually have the money

Thanks all.
I figured it would be messy, and potentially lengthy.
Probate is still not complete, so presently they don't actually own the house.
No experience of probate either.
It's a really awful situation.

Money really isn't the kicker here. They aren't going to be financially destroyed by following the process, but they are absolutely heartbroken. They are trying to deal with a situation that terrifies them. I'm concerned about their capacity to handle a lengthy complicated situation.

The deposit is held correctly, so that won't be an issue.
It started as a managed tenancy, but they decided to take the agent out of the equation.

Strangely, the occupiers of the house are a couple with kids. The tenancy agreement is in the names of the woman, and her mother.
Her mother never lived there, so I am assuming there is bad credit/history on the man's side.
Alarm bells clearly ringing- albeit late.

He has lived there for the duration of the tenancy. Not sure it makes a difference in this situation.

I have also previously been a landlord- but that was a managed tenancy. I didn't really need to understand these processes. One set of tenants who chose to end the tenancy- so I sold the property.
I had no idea how complex this would be.

This sounds very complex. Could you/they take some expert legal advice? The probate solicitor may be able to recommend someone. It could save a lot of stress for everyone.

It’s very good for you to help out, it must be awful for the family.

I have read the whole thread thus far. Surely the status quo is that they should pay their rent to the late landlord's estate. They're taking advantage. They deserve you to serve them notice. I'm sorry for your loss and for his elderly parents.

Get them to join the NRLA (national residential landlords association) and they will get free legal advice from an expert, it costs around £75 pa so well worth it just for that.

I agree with a PP. Unfortunately, I think you have to write off the arrears and concentrate on getting them out. Tell them you'll forego the money if they leave within a fortnight or whatever.

They probably would not leave within a fortnight as they are unlikely to have anywhere to go that quickly.
I would say though that a leak from a boiler does need repairing.

There is various advice online about this situation.
www.lindsays.co.uk/news-and-insights/insights/executor-landlords-what-are-your-obligations

The whole thing is just incredibly messy.
The bank accounts are now all closed.
They were advised to tell the tenants that they should pay the parents directly. The tenants paid one month, then nothing.

Clearly this highlights the inability to start the eviction process.
The landlord is still the deceased relative, until probate is complete. Who can evict them before that?

This is further complicated by an unpaid debt to the inland revenue. This came to light just before the bereavement, and is causing huge additional stress.
Some correspondence arrived shortly before the death. At this point, nobody cared one jot about the letters, because we were trying to organise a hospice situation at home.

I had no idea that elderly parents became immediately liable for resolving their child's unpaid tax bills.
Clearly it is a debt that must be cleared, and absolutely can be cleared. But threatening them with court has happened already, and is terrifying them.
They aren't responsible for this situation, but they have to manage the consequences. Nobody can really take on the pressure, because everyone refuses to deal with the wider family.

It's such a mess.
The relative was obviously naive about certain legalities. They were always financially responsible. No debts exist, except a minimal mortgage, and this significant tax bill.

It's awful when a parent passes, and their children have to resolve everything. Also totally devastating to address when a spouse passes.
They have lost a young adult child. They are long retired. Elderly technophobes, one with dementia.
Somehow they are being expected to navigate this?

I think the executor can evict them. But this is not a quick process.

@Nextlevelnonsense the other option if no one is capable of dealing with this, is to sell the house with sitting tenants. Less money, but less stress.

On the IR stuff, ask elderly relatives to contact their MP. They can write to hmrc and ask for a delay on this process.

I mean this nicely.
If money is not the issue, and I assume not given the parents position and the fact that there is a house in the estate (and life insurance??), I think the best thing all round is to pay professionals to deal with all of it. Solicitors for probate and sorting out the tenants and either them or an accountant to sort out the immediate tax issue. This isn't simple and there are professionals who can resolve it. Shame on the tenants for taking advantage. A solicitors letter may focus their minds.

The executor is responsible for the tenancy, until probate is done. Ideally a landlord names an executor who has the needed skills and experience, but this isn't always the case.

Given the OP updates about the patents’ capacity to deal with this then definitely get the solicitors handling the state to deal with the eviction process. Their fee will come out of the estate. The tax bill will also be payable from the estate as it is the deceased’s debt not his heirs

If they have 4 months of rent arrears you can issue a Section 8 for the arrears. That will be better than the section 21 no fault eviction. You can issue both together but make sure you get it all right on the forms or else the process starts again.

There is a facebook group for buy to let landlords .. it's full of good advice, alongside here it may be useful to check out. What a difficult and traumatic time for the family and friends, and you trying to support. hope you find a way through.

If they are not paying rent then they need to be evicted. Get a solicitor and set the ball in motion.

If they have 4 months of rent arrears you can issue a Section 8 for the arrears. That will be better than the section 21 no fault eviction. You can issue both together but make sure you get it all right on the forms or else the process starts again.

This. Sorry, it's been a while.
www.gov.uk/government/publications/covid-19-and-renting-guidance-for-landlords-tenants-and-local-authorities/technical-guidance-on-eviction-notices
this link might help you also

Start the legal process without delay.
Eviction for non payment of rent is not a good thing to have on your record!

On the tax bill, the parents do NOT become immediately liable for their deceased son's tax. However, it is a liability of his estate - are they the executors? If so then HMRC are writing to them in that capacity not in their personal capacity. They should pass the correspondence with HMRC to the solicitor to deal with. I agree that writing to their MP would be a good idea as well. Possibly going to see him/her in their surgery might help if only to show the MP that they are elderly distressed parents struggling to make headway through an awful situation.

@londonmummy1966 I’m sure you are being kind but there’s nothing for an MP in this. Someone has died, the estate has to be wound up and a solicitor can do this if the executors/administrators are unable/ unwilling.

@VanCleefArpels actually in my experience (former tax professional) a letter from the MP to the District Inspector will almost certainly buy them a bit of time and remove some of the pressure from the collection team - DIs tend to not like the thought of a tearful elderly couple who have lost their child telling the local paper how their district is hounding them for their son's tax before probate is granted. The chances are that a letter from an MP will lead to someone more senior overseeing the case.