Sub letting tenants are defaulting

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Hi there

My house is rented to a charity organisation - the only way that I would let the people living there now move in (as they were bankrupt and didn't declare at the time of signing and this was later found out in a credit check) was if the company they were working for rented th property and they subletted. They had to pay the first six months up front and then I let them go monthly. This all began in july 2007. Sometimes they were late with the rent and I was flexible in moving payment dates and also carrying alot of work out to the property at their request.

They were late in November (23) and put some money in but not all and promised to settle by 24th december. When I called on the 31 dec to ask the girl said her partner had left and she was going for HB. I reminded her that it was the company that was liable (had later found out that the guy who ran the co. was her father). I also reminded her that arrears were unlikely to be settled by HB and she should set a strategy in place to cover this. She has got back with her partner and is still going for HB as he lost his job and she is the only one working (for her fathers co.). They have suggested that I keep the deposit to cover their arrears - I have said no it is not possible to do this. On the 23 Jan they will be nearly three months in arrears and I don't know if the HB will come through etc.

My question is that I only have the AST that is in the charity's name which was a year - 18 months contract am I right in thinking that this contract still stands and can be used as a roll over contract to pursue the charity for the money? As they are subletting from the charity and I refuse to put a contract in their name are they eligible for HB? I feel that as the guy is bankrupt (Jan 07) and his partner has two kids under three I would lose out if I put a contract in their names am I in a stronger position renting to the company and does the contract still stand?

Many thanks in anticipation of your answer

11/01/2009 00:00

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