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I am buying a repossesed flat, Urgent help please
Comments
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We bought a repossessed flat in April this year. We had to reimburse the sellers for this year's services charges (which they'd paid) as part of the deal.
I'm surprised that communal electricity doesn't form part of the service charge. It's highly unusual for it to be separate.0 -
bristol_pilot wrote: »I used to run a flats managment company and I confirm that the management company will not allow the transfer to a new owner unless the previous owner has paid all charges due. In the case of a repo, the previous owner may well have gone AWOL so to avoid the other owners in the block having to pick up the tab it is quite usual that the new owner would be expected to pay the back charges. You have the option to walk away from the purchase, of course.
Reading all the answers, it seems i m stuck with these charges which almost amount to £2500.
I bought this from a property dealer. does that make any difference?something missing0 -
Two and a half grand for 18 months' worth of service charges doesn't sound excessive. I had a picture in my mind of a much larger sum The leccy for the common parts probably amounts to half a dozen lights costing pennies a day to run.
What's a "property dealer"?0 -
BitterAndTwisted wrote: »Two and a half grand for 18 months' worth of service charges doesn't sound excessive. I had a picture in my mind of a much larger sum The leccy for the common parts probably amounts to half a dozen lights costing pennies a day to run.
What's a "property dealer"?
Estate Agentsomething missing0 -
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Have you exchanged contracts? If you have not, then you can walk away or reduce your offer.Reading all the answers, it seems i m stuck with these charges which almost amount to £2500.
I bought this from a property dealer. does that make any difference?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
The only difference is that if you'd already bought it at auction, you'd HAVE to buy it/complete and pay it.
As you're still in the process of buying it through an estate agent, you've not exchanged yet, so would still have the option of walking away.
So, the difference is how tied in you are.
A lot of auction properties have all sorts of bills and things the new owner has to pay out for, that you can only see from the legal pack; but a lot of people never bother to buy/read the legal pack, so only find these things out after they've bought/exchanged in the auction room. I saw one on the telly (Homes Under the Hammer) where a couple bought a house and in the legal pack it said "to pay an undisclosed amount of debt that the previous owner owes". They took a chance and luckily it wasn't a lot, but it had the potential to be a fortune.0 -
I am purchasing a repossesed flat in Manchester and now my sloicitor has written to me to say that;
(1) I will be liable to pay last 18 months service charges for the building,
(2) also last 3 years electric charges for communal areas because there was a deficit.
I have tried everywhere but nobody seems to know the answer, So please help or direct me to the right forums/websites etc
In short, do you have to pay previous Communal bills if buying repossesed property?
Thanks in advance
Repossession should not necessarily be an issue in this as a sale is a sale.
On (1) which should include (2) (legal) opinion varies and I know of several LAs where the debt remains with the person who owned at the time. This sols info sheet gives a better explanation than I might hope to:
http://www.brethertons.co.uk/Content/File/PDF/Property%20Management%20-%20Liability%20of%20Service%20Charge%20after%20a%20flat%20is%20sold.pdf
(2) should be collected within (1) as others have confirmed. Check your lease in case there are any specific covenants. Check the service charge bill for a 'communal electrics' head of charge.
If the head exists, then the LL has 18 months from the date costs were incurred to demand payment otherwise you have a valid challenge at LVT. 18-month rule info in the 'Demands for sServices Charges' section about a third of the way down http://www.brethertons.co.uk/Content/File/PDF/Property%20Management%20-%20Liability%20of%20Service%20Charge%20after%20a%20flat%20is%20sold.pdfOpinion, advice and information are different things. Don't be surprised if you receive all 3 in response.
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Thanks Blkbrd, that;s the kind of thing I was looking for in case there is a dispute later on too.Repossession should not necessarily be an issue in this as a sale is a sale.
On (1) which should include (2) (legal) opinion varies and I know of several LAs where the debt remains with the person who owned at the time. This sols info sheet gives a better explanation than I might hope to:
http://www.brethertons.co.uk/Content/File/PDF/Property%20Management%20-%20Liability%20of%20Service%20Charge%20after%20a%20flat%20is%20sold.pdf
(2) should be collected within (1) as others have confirmed. Check your lease in case there are any specific covenants. Check the service charge bill for a 'communal electrics' head of charge.
If the head exists, then the LL has 18 months from the date costs were incurred to demand payment otherwise you have a valid challenge at LVT. 18-month rule info in the 'Demands for sServices Charges' section about a third of the way down http://www.brethertons.co.uk/Content/File/PDF/Property%20Management%20-%20Liability%20of%20Service%20Charge%20after%20a%20flat%20is%20sold.pdfsomething missing0 -
I just bought a repossession. I was not liable for any of the previous owner's debts.
In fact, our company already owned the freehold and I got a cheque after completion for the outstanding ground rent!Everything that is supposed to be in heaven is already here on earth.
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