Lotus sanctuary

Currently, there are 0 users and 1 guest visiting this topic.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • #281815
    peterdelamothe
    Keymaster

    A provider of exempt and supported has just warned that it may go into administration. It admits to being millions in debt and blames local authorities for delays in payment of HB and refusing exempt status. Source City AM a finance newspaper.

    I know nothing about them but this is interesting as it admits their business model is no longer working. Sounds like councils are doing their job to me.

    If they do go out of business the tenants are unlikely to be affected but any overpayment will be lost. So I suggest you check the position with this provider. Any cases you have, any outstanding overpayments and so on.

    #281830
    peterdelamothe
    Keymaster

    Home Reit (who provides accommodation to Lotus) issued a statement to the stock mkt today. An extract follows:

    “L was founded in 2018 and provides over 2,000 beds in aggregate to house vulnerable people. As at 31 August 2022, L represented 12.2% of the Company’s overall rent roll, providing 939 beds predominantly to vulnerable women. As at 31 December 2022, the Company’s properties let to L were 55% occupied (by beds), inclusive of properties undergoing refurbishment.

    As previously announced, all rent due to 31 August 2022 has been paid, with final payments for the August quarter received in October 2022. The Company confirms that L has not paid any rent for the quarter to 30 November 2022. Historically, rent payments have been made between two weeks to two months post invoice date”.

    #281831
    peterdelamothe
    Keymaster

    This raises an interesting question. Where HB is in payment to Lotus and they are not paying the monies on to the REIT, is there anything Councils should do?

    I mentioned overpayment recovery but does the Council need to stop payment to Lotus? I dont think so …unless Lotus do go into administration. Suspending payment would probably be the end for Lotus (who provide 2000 beds so not that small) but it is well worth watching as I suspect the HB monies paid to Lotus since September last may be lost. That may be a big problem for the Councils involved but is it a matter for HB? Will the new landlord demand the HB again? I dont think they can….but they might ask.

    Any thoughts?

    #281838
    John Boxall
    Participant

    If LA’s think that there is a risk of tenants being evicted because of non payment of rent by Lotus is there any way they could invoke Regs 95 or 96 and pay Home Reit directly?

    Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and—and in short you are for ever floored.

    Wilkins Micawber, Ch12 David Copperfield

    #281842
    Kay_Tade
    Participant

    @ PD, I don’t think the new landlord (Home Reit or anyone else) can demand HB again.

    @ JB, Very possible I guess, good point. Home Reit is the lessor (Superior landlord) and Lotus the Lessee (Tenant) I can’t see why 95/96 can’t apply and payments made directly to Home Reit.

Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.