Updating post from Reddit.

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QUESTION
Posted by throwaxecatchlp 2 weeks ago
Do you also inherit arrears?

Hello everyone.

If I’m being gifted a property via deed of gift and the tenant is currently in 2 months of arrears, can I give them a section 8 immediately once the transfer is complete?? Does the timer reset? Very unsure of the process here, thank you for reading.

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Posted by Christine4321 2 weeks ago

I think your header is confusing. You mean your inheriting a property that has a sitting tenant who is in arrears? If yes, then this is a common scenario more often seen with house sales with a sitting tenant. The existing tenancy remains in force and you are simply replaced as the new landlord, along with all obligations under the tenancy agreement.

Where arrears exist and speed is obviously needed, then the executors of the estate can act as ‘landlord’ and issue the required section 8 notice, without any delays waiting for probate.

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Posted by throwaxecatchlp 2 weeks ago

Yeah exactly, sorry it wasn’t quite clear. The tenant seems to think she can just say no to a rent increase, she’s refused to go to the tribunal and is now in arrears. The property is being transferred, my confusion came from how the arrears system works here. I thought maybe she wouldn’t technically owe the new landlord any arrears because they’d be owed to the prior landlord.

There’s no written tenancy agreement in place so it’s a bit messy, I wanted to know if I could still have them kicked out based on the prior landlords owed arrears and if the two months would ‘reset’ in a sense. I hope that clears it up, thank you for your reply :)

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Posted by Christine4321 2 weeks ago

No probs. Yes a tenancy exists albeit without paperwork, and no the tenant cant just write off arrears because the landlord has died.

If this is recent and the estate hasnt obtained probate as yet, then it must be the executors of the estate (usually named in a will, or if no will, then the closest living relative applies for letters of administration to manage the deceased estate) who then step in the role of ‘landlord‘ on behalf of the deceased.

Only the executors or the administrator can act on behalf of the deceased in the short term. If you are simply a beneficiary OP and not an executor/administrator, you should press the executors to act and issue the section 8 notice for arrears asap. The estate is losing money every week this tenant refuses to pay rent, and there is a legal obligation to act in the best interests of the deceased and their estate.

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Posted by Mayoday_Im_in_love 2 weeks ago

If you look at the tenancy agreement, the will and the statutes surrounding the passing of tenancy between landlords, estates, and landlords the tenant is likely to owe the estate the arrears.

I doubt the executor would be too fussed either way, but the debt was between the tenant and the landlord and is unlikely to be inherited.

In any case moving towards getting the eviction process moving seems like the sensible option, unless the tenant has been holding the rent, waiting for bank details.

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Posted by throwaxecatchlp 2 weeks ago

Yeah there’s no written tenancy agreement in place with this property so it’s a bit of a nightmare. I was hoping once the transference was complete, I could offer them a tenancy agreement at the set rent and we forget the arrears or they get given the section 8. Might be for the best as you said to just lob the section 8 now and see how it goes

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Posted by phpadam 2 weeks ago

I'd talk to an eviction specialist like Landlord Action it may be best if the existing landlord issues the Section 8.

However, I would imagine it continues. I know the liabilities do.

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Posted by throwaxecatchlp 2 weeks ago

Ohhh I didn’t know about this thank you very much, I’ll look into it now, much appreciated

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Posted by Soft-Influence-3645 2 weeks ago

Oh god, sounds like a right nightmare. Would you really want a tenant like that though?

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Posted by throwaxecatchlp 2 weeks ago

Not really to be honest mate but with there being no written tenancy agreement, short of getting them to sign a new one for an eventual s21, I can’t really get rid of them any other way

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