Judge strikes out possession claim over original deposit?

Judge strikes out possession claim over original deposit?

8:56 AM, 13th January 2025, About 3 weeks ago 21

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Hi Guys, I am wondering if you are able to help with this situation:

I signed a tenancy agreement back in January 2015 and collected 6 weeks deposit with the rent of £1,075 per month and collected deposit of £1,600. I increased the rent twice – once in April 2019 from £1,075 to £1,200 and then in January 2024 to £1,400. In June 2024 I served the tenant with a Section 21 notice.

No new tenancy was signed and the contract rolled into periodic tenancy after 12 months of original tenancy. As currently rent is £1,400 therefore 5 weeks deposit would in fact be more than £1,600 but I currently hold £1,600. Furthermore, the tenant did not pay rent in JUNE 2024 and since then I am collecting rent directly from DWP.

The Judge has offered 28 days grace period Pursuant to CPR r.55.16 (4) (b) – the Claimant may apply within 28 days of the service of the order for the claim to be restored.

My question is: Do I have to submit a N244 application on the basis that rent is currently £1,400 per month, therefore my section 21 was compliant? Or will the Judge only look at only original amount of £1,075 and I have to refund the tenant the difference?

Do I have to start the whole process again?

Can I mention that the tenant owes me £1,400 in rent and can that count towards offsetting the arrears or do arrears not count?

This is the only property I have and a friend who helped me previously is very unwell and I am not too familiar with process and once possession is granted then I would look to sell this property.

Any help will be greatly appreciated.

By the way there are 2 fee structures for N244 application – £303 and £119 which one would apply?

Many thanks and Happy New Year to all fellow landlords.

Jaz


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Phil rosenberg

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7:09 AM, 20th January 2025, About 2 weeks ago

Just to say - you have asked a few times about mentioning the rent increase and how the deposit is now less than 5 weeks rent.

This is not relevant. Including it in you application just muddies the waters. Even if your tenancy has started after 1st June 2019, it would not have been relevant as the max deposit is based on the rent at the time it is taken.

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