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Moving out, fallen out with landlord, what can she do to me?

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Hi,
I'm a tenant who has lived happily in a self contained small flat beneath my landlady's house for over 7 years. I have a standard tenancy agreement that she made me renew back in Feb for 6 months. After 6 years rolling agreement, I felt this strange, but of course signed it. Anyway, she sent me a letter last month (3 months into new 6 month agreement) saying she needs me to move out but will give me two months to find somewhere new as I'm on housing benefit. This is still a month short of our contract. I used my deposit with her about 3 years ago to cover rent I couldn't pay, so she has nothing over me. However, she's made it real difficult for me with builders coming round to measure up, bad vibes, so I said I'd move out next week (a month's notice). She told me I must phone the council to arrange collection of her sofa as she no longer wants it. I did this to keep the peace. However I pay my rent every fortnight and can't afford this last two weeks rent as I need it to put towards a deposit on a new place - yes of course I am in the wrong here, but it's that or the street. So I emailed her asking for a repayment plan and promising to clean the flat spotless and get rid of her sofa, plants, etc.
She came back all nasty saying she will be charging interest on the debt, etc.
My question (and thanks if you've read this far) is, I'm so angry and frustrated with her that I'm tempted to just move all my stuff out next week, leave her bloody sofa and just post the keys back through the letter box. I have no money, nothing worth chasing with CCJ for, but she's so rich and petty that she'd probably be prepared to pay thousands in court fees just to reclaim the £350 I owe her.
Any advice on my worst case scenario once I've moved out if she can't find me?
Please understand, this is not my nature, and I hate being deceitful or nasty, but feel she's really done a number on me, especially as these past 7 years I've put up with so much from her just because I'm on housing benefit and was scared of losing place.
Thanks for any insight....
Jess D.

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