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Possession using section 8

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Have had issues over non- payment and arrears. Tenant in question was sharing with 2 other tenants all on individual AST s renting rooms. They all started 1st 0ct 2012 two tenants quickly fell into arrears the one paying rent up until Dec left after giving a moths notice complaining he couldn’t live with the other two and served section 8 notices on the two in arrears in Jan 2013 my approach being if you just leave I will not chase the cash in both cases arrears of £660 & £790. Neither had given me a deposit it was agreed they would pay this in the following weeks of moving in. One agreed to move out and did so over the following weeks the other remained and this is where the story goes on. The other tenants have kept me informed where the remaining tenant has not made any attempts to inform me and had regularly said that he has got the monies and does not follow through. 22 Jan 2013 after confirming with T that he received section 8 to let me know what he intended to do by the 25th he texted me on the 26th Jan to say he wanted to stay and would make a payment next week in the mean time I served a section 21 notice on him to take effect within time scale allowed. No money was paid in relation to the arrears that week. On reflection he has made such promises/statements and not followed through. During all this I have put the house up for sale have currently had a cash offer this week. Historically purchased house to provide care/accommodation to local young people accommodated by LA stopped this and moved out of the area and have subsequently rented rooms to pay mortgage etc. to get by until the worst of the housing crisis had passed. Having had a number of absconders and savings dwindling and the stress of managing/maintaining the property living 4hrs away has all taken its toll. Have completed all paper work for N5 and N119 but have decided to do it on line as this might be quicker. The arrears are around 4 months now. My approach is to apply for possession only not arrears or costs to hopefully resolve this quicker, as the tenant has nothing anyway what is the point? Any advice would be much appreciated, also a couple of questions. Has anyone offered cash to a tenant to leave? This goes against my instincts but could be easy in the long run. Technical question is this correct submission for statutory grounds Para. 4c) Rent of £1,158.00 remains unpaid and therefore the defendant is in excess of 2 months or eight weeks in arrears. This claim relies on schedule 2, part 1 ground 8 and on schedule 2 part 2 grounds 10&11 of the Housing Act 1988 (as amended).
My next twist in all this is that I stay at the house at times and keep a room there is it possible to try another approach having told tenant some time ago that he lodges with me whilst dealing with other issues(smoking in the premises , cleanliness and being stoned whenever I saw him, not deposit and already a month and a half in arrears) early on into his stay , I have given him an AST does this matter as from what I can gather he will have less rights and he has seen me stay at the property and the council tax and water is in my name. He has also early on in the process asked me for replacement contract as he has lost the last page, the signed portion. Can I argue that he is an excluded occupier? Having issued section 8 and section 21 I could just say I was stupid or miss in formed.
A lot to take in again any guidance would be much appreciated. Thank you

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