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Stuart J
Stuart J, Solicitor
Category: UK Property Law
Satisfied Customers: 22400
Experience:  PGD Law. 20 years legal profession, 6 as partner in High Street practice
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I am the owner of a property that London Housing Solutions

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I am the owner of a property that London Housing Solutions manage and all year they have been late with making payments to me.

I have always had problems with them paying me the rent that they get from their tenant on time. In fact all this year they have been late after continuously trying to contact them by phone and for the last 3 months instead of the receiving payment on the 28th as per Agreement and after after still chasing them, I receive payment on the 14th.

Today being the 14th, when I finally got through to them by phone I was told that London Housing Solutions had gone into receivership and have been told that I can take over the lease myself or transfer to Local Housing who answered the phone on surprise, surprise the same number as London Housing 0208(NNN) NNN-NNNNand who had contacted me earlier this year by letter saying that they were the new company I should be dealing with, but after calling London Housing Solutions I was told that they have nothing to do with them, one director and half of the company had left and formed Local Housing and the rest had remained with London Housing Solutions and the Agreement was with them and not Local Housing.

I contacted the Council and informed that that London Housing Solution has gone into receivership owing me 1 month rent, and of course the rent which would have ben due at the end of November. They told me to contact the tenant and inform her to stop payment of the rent to London Housing Solutions and that payments can be made direct to me. I have sent her a letter, copying it to the Council as well.

Please advice me on where I stand and what I should do going forward.
Yours Mrs Marva Wilson-Harrison
Thank you for the question. It is my pleasure to help you with this today. Please bear with me if I ask for more information.

Do you want to simply take the property over and deal with tenant direct?

can you call personally on the tenant?
Customer: replied 3 years ago.


Hi


 


Probably yes to becoming the 'Landlord ' the existing tenant.


 


It is difficult to get in contact with the tenant by phone, hence the reason for writing to her.


 


Regards

At this stage, your letter to the tenant must say exactly what has happened and advised the tenant yourself not to make any payments to LHS as that company is in liquidation.
Tell the tenant that any rent they paid to LHS after the date of the letter will be forfeit and will not go towards their rent account with you.
Tell them that there are arrears on the account in respect of months A B and C, and if they can prove that they pay that money to LHS, they will not be responsible for it.
You are going to have to do get in touch with the liquidator because you need to get the liquidator to disclaim the tenancy agreement. At this stage in time, the above is the most practical solution. The last thing you want is the liquidator, saying that the lease is his so you need to do it formally in the long term because technically, in the short term, until you have foreclosed on the lease, it is vested in the liquidator.
There is an argument which says that the arrangement between you and LHS is commercial and the arrangement between LHS is residential. If that is the case, then you can “peaceably re-enter the property,” once rent is two months in arrears from LHS. You then automatically become the landlord to deal with the tenant direct.
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