Our tenant was two months late with his rent. We understood through WhatsApp messages that he was in South America and questioned him about the late rent and occupancy. He said he had issues with HSBC and awaiting new codes. He told us a friend was staying in the flat 2 to 3 times a week protecting his valuables and thus not making our property insurance invalid. He said he would be back end of December
We served an s8 the day after he missed the second months payment, that qualified us to go to court from 7 January 2022.
On 9 January 2022 he secured a 60 day breathing space to which we were informed through our agents Marsh & Parsons.
We have questioned the breathing space and shown that we have not been paid rent during the breathing space, which was due 19/01/22 (today 24/1/22 day 16 of the 60 day breathing space) and asked they review and cancel the breathing space. We have submitted all the WhatsApp correspondence and the audio call which confirms our tenant was in South America until end of December. Our neighbour to our tenant says he is receiving many parcels and doesn't appear to be someone in debt. So far [email protected] have been very unhelpful. Pointing us to Debt Respite Scheme (Breathing Space) guidance for creditors - GOV.UK (www.gov.uk)
Breathing Space is a very unwelcome development that needs further reviewing. I believe it just gives the tenant a further two months free rent, although the theory is he is supposed to pay during breathing space. We have been advised by agents & lawyers that it will likely be 6-8 months before we can get the tenant evicted and not to expect any rent arrears to be paid and costs will be between 1500-2500GBP. We are looking at a lose of around 22-25K. I sincerely hope that the NRLA put pressure on the government to review these new processes.
We had an issue with the solicitor we engaged initially. Charged us an initial 200GBP to review the paperwork, but seemingly only read the front page of the AST (drawn up by Marsh & Parsons) failed to see that the s47 & s48 was included and insisted we had to issue a s48 and a new s8. Failed to read the break clause at 24 months for landlord & tenant of a 36 month contract. Mentioning this as many solicitors dont appear to read or even skim read the AST when you engage them. Said we could only go forward with a s8 due to the contract length. We dropped these guys and considering a firm recommended on the NRLA site.
Can the NRLA advise us on the following;
The AST lease is 36 Months started on 16/02/21 - break clause at 24 months
Clause 30.2 The Tenant agrees that the Landlord has the right to terminate the Tenancy by giving the Tenant not less than two months advance written Notice. This notice can only expire after the first twenty-four months of the Tenancy or at any time thereafter. At the expiry of the notice period the Tenancy Agreement shall cease except that either the Landlord or the Tenant can pursue their legal remedies against the other for any existing breach of any rights or obligations of the Agreement.
Clause 1.2. This Agreement is intended to create an Assured Shorthold Tenancy under Part I of Chapter II of the Housing Act 1988 (as amended) and the provisions for the recovery of possession of the Premises set out in section 21 of that Act will apply.
Clauses under 29 - talk about how the agreement may be ended early.
Ending the Tenancy and Forfeiture.
Clause 29.1. If at any time:
- 1.1 Ending the Tenancy and Forfeiture detail provisions if at any time rent remaining unpaid for more than 14 days and or the tenant becomes bankrupt
Because of Clause 1.2 and 29 - Would we be able to serve a s.21 now or certainly at the end of the breathing space rather than a s.8. Can we legally end the AST early
Look forward to your thoughts on this.
