Most private landlords will grant assured shorthold tenancies (ASTs). If the tenancy is drawn up properly and all the relevant documents that should be served on the tenant at the beginning of the tenancy have been served, such as a Gas Safety Certificate, an EPC and information about how the tenants rent is protected, a landlord is entitled to ask the court to make a possession order under the assured shorthold ground. This is irrespective of whether the tenant is in breach of the tenancy or in rent arrears.
If the landlord satisfies all the criteria, this would give rise to a mandatory ground for possession, which means that the court will be obliged to make an order for possession. This is something which the government has said it will reform and make it harder for private landlords to recover a property from a tenant who is not at fault.
The AST itself may also show bankruptcy as a ground for terminating the lease. This would be under ground 12 (“Breach of tenancy obligation”), one of the discretionary grounds. It does, however, seems unlikely that a court would exercise its discretion and make someone homeless by reason of bankruptcy without more. Two weeks’ notice of proceedings is normally required, and this ground covers a breach of any term in the tenancy agreement other than rent.
If a landlord cannot rely on the assured shorthold ground, they may still apply for possession if the tenancy provides that being bankrupt is a breach of the tenancy. This, however, will be a discretionary ground for possession and so the court will have the ability to refuse to make such an order if it considers it would be unreasonable.
Next Step
If you want to find out anything further about this topic then please feel free to call on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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