Help - Landlord changed - Deposit not being repaid

[b2b]

This is a great forum. I am in big trouble and need some help.

I rented a flat in London in Oct 2006 in London for six months. The contract was renewed by default to two month's notice on either side.

My landlord sold the flat in Aug 2007. They agreed that my deposit will be transferred to the new landlord. Deposit amount is GBP 1450.

The new landlord had bought the flat as an investment. So I continue to stay in the same flat even today.

Meanwhile now I have been told that the old landlord did not handover the deposit amount to the new landlord. I contacted my old landlord and he said it is best that it is given back to me by him.

A month ago, he said he will come over and pay the entire amount. But since last one month he is not answering my mails, calls. There is no contact / response whatsoever.

It has been now over 8 months that he sold the flat to the current landlord. The current landlord says that only I can legally demand the deposit back.

I had rented through an agency. But they are saying that I'll have to take it up with the landlord for refund of deposit.

How do I get my deposit back. What's the best course of action?

Thanks in advance.

[Aequitas]

It depends on what the tenancy agreement says. Assuming it refers to the deposit and there is no unusual wording, then any obligation on the old landlord to repay the deposit passes to the new landlord - see section 3 (3) of the Landlord and Tenant (Covenants) Act 1995.

What ought to have happened is that when the sale was completed the old landlord passed the deposit to the new landlord and that the old landlord obtained a release from you. If the new landlord (or his solicitor) failed to deal with it properly it is not your fault and the new landlord will have to put up with it. Of course, as the tenancy is continuing you do not have the right to call for the deposit from the new landlord - it has to wait until the tenancy has ended.

[b2b]

Thanks for your reply. That helps.

It means I can't make a claim to the old landlord. Any such claim has to be with the new landlord. And his view is that it is my problem to get the deposit back from the old landlord.

Another issue is that the new landlord has not yet signed the rental agreement with me. Do I need to get one or the agreement with old landlord is deemed to continue with the old landlord in absence of another agreement?

[Esio Trot]

Originally Posted by b2b

It means I can't make a claim to the old landlord.

Not necessarily. Look at the tenancy agreement you first signed. Regarding the deposit, did it mention stakeholder? If so, then the holder of it would only be able to transfer it to another person with your permission. This is because a stakeholder acts as a quasi trustee for both landlord and tenant (even if the landlord holds it). However, having just looked at the Covenants Act Aequitas quoted, I may be wrong here. Should you need to take court action, name both landlords on your claim though.

Originally Posted by b2b

Another issue is that the new landlord has not yet signed the rental agreement with me. Do I need to get one or the agreement with old landlord is deemed to continue with the old landlord in absence of another agreement?

Under s48 Landlord and Tenant Act, no rent is payable until you have been told the name and address of the landlord - until then, rent is due to the old landlord - not that you would hand it over to him.

The old agreement continues, and I would suggest you don't sign a new one until this deposit thing is sorted.