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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47368
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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My friend is about to rent a flat and is paying six months

Customer Question

My friend is about to rent a flat and is paying six months rent in advance at his own request. I believe that this is a dangerous route to take although the landlord is giving a six month lease. Supposing the landlord went bankrupt would my friend be evicted and lose his advance payment (about £5K)
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.
Hello so this is not a deposit but full rent is that correct?
Customer: replied 1 year ago.
yes
Customer: replied 1 year ago.
am about to meet my friend prior to him signing the lease - any advice would be welcome
Expert:  Ben Jones replied 1 year ago.
Whilst there are certain risks with paying rent up front, he would still have protection. If the landlord went bankrupt then it does not automatically mean that he will get evicted. The lender (whoever the landlord has a mortgage with) could seek to repossess the property if he has failed to keep up with mortgage repayments but it does not mean they can just turn up one day and evict him. There is a specific procedure they need to follow and often it will require court’s approval, which will grant a reasonable period allowing the tenant to find somewhere new to live. However, the rent he had paid up front may be lost because there is no security provided against that. Therefore, if he wanted to get the remainder of the rent he would have to sue the landlord and if they are bankrupt that might be a pointless exercise. So yes, there would be a risk with losing the balance of the rent but he would not just be evicted like that and would be allowed a reasonable period to in somewhere new to live. I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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Customer: replied 1 year ago.
Following on from our conversation yesterday I met with my friends prospective landlord and discovered that he does require a deposit of one months rent. I believe that such a deposit should be held by an independent bondholder. If so, how and where do we contact such a person?
Expert:  Ben Jones replied 1 year ago.
Hello, you can view the relevant information here, together with a list of the accepted deposit protection schemes: https://www.gov.uk/tenancy-deposit-protection/overview