Selling whilst owing maintenance fees

buttons888

Can anyone tell me what the situation is re selling a property whilst owing maintenance fees? I can't seem to find anything about it in the covenant. Surely the maintenance company can't stop you? The money you owe is not secured on the property so they would just have to chase you for it surely? Am I right in thinking that the buyers solicitors check to see if that sort of thing is paid up to date?

many thanks

sunshinetours

Surely that will be covered in your agreement with the residents/maintenece company.

Won't look good to any potential buyer especially if the liability can be passed to future owners.

Is the amount in dispute or just in arrears? if in dipsute again won;t look good and if just in arrears then presumably you accept you owe the money so can give a gurantee to pay out of sale proceeds which will be lodged with your solicitor?

GDB2222

The liability remains with the property, not with you personally. So, your buyer will want the maintenance paid up to date or will deduct it from the purchase price.

Is there a dispute about the amount, or are you just short of cash?

buttons888

No, the amount is in dispute. It's everybody's favourite Peverel. They have doubled the maintenance charges this year because they say there were unexpected costs (which they can't/won't specify when asked). I am now paying £2200 a year for a 2 bedroom flat in Kent. They also seem to have a fascination for charging unbelievable amounts for fixing and changing lightbulbs. Apparently my block of 4 apartments has used £1500 worth of them in 1 year. Considering there are 8 communal lightbulbs in the whole block they must have solid gold filaments in them. Not that i've ever seen a single one changed either. We have witheld our payments and disputed this. Already we have gotten past the debt-collectors letters stage and have now moved on to their solicitors (Machins) threatening court action. Obviously all their fees have been piled on top as well now. Basically we were just thinking of selling and moving away and letting them chase us for it but didn't know the deal with being able to sell hence the original post.

sunshinetours

I would get all this sorted before you even think about selling. As its a legal dispute I would imagine this has to be dicslosed to any potential buyer so can't see how you can possibly sell at this stage

Have you taken advice on the legal issue against you? if not I would be ASAP. As unfair as it may be, if its in a watertight agreement then I can't see how you will be able to successfully fight it without legal advice at least. Check you home insurance to see if you have legal cover in case this covers you or maybe your bank as some accounts have legal helplines as part of a monthly account fee

Fire_Fox

buttons888 wrote: »

No, the amount is in dispute. It's everybody's favourite Peverel. They have doubled the maintenance charges this year because they say there were unexpected costs (which they can't/won't specify when asked). I am now paying £2200 a year for a 2 bedroom flat in Kent. They also seem to have a fascination for charging unbelievable amounts for fixing and changing lightbulbs.

Apparently my block of 4 apartments has used £1500 worth of them in 1 year. Considering there are 8 communal lightbulbs in the whole block they must have solid gold filaments in them. Not that i've ever seen a single one changed either. We have witheld our payments and disputed this. Already we have gotten past the debt-collectors letters stage and have now moved on to their solicitors (Machins) threatening court action. Obviously all their fees have been piled on top as well now. Basically we were just thinking of selling and moving away and letting them chase us for it but didn't know the deal with being able to sell hence the original post.

Have you formally (in writing, preferably by recorded delivery) given notice to Peverel that you are disputing the service charges? Are you aware that there are only very limited grounds for withholding service charges, a dispute is NOT usually one of them? Are you aware that you can be taken to court for service charges that are not lawfully withheld, you get a CCJ and the amount can be added to your mortgage? Have you considered paying the charges and then disputing them at a Leasehold Valuation Tribunal? Have you formally requested (in writing, preferably by recorded delivery) a breakdown of the charges and access to the accounts and receipts (Landlord-Tenant Act 1985)?

I have every sympathy with you as we had much the same problem with our (now ex) management company who claimed for £1200 replacement lamps (not including labour) for a block comprised of just fifteen flats. I looked up the price of identical bulbs on eBay and they would have had to change every lamp in the building twice a week for an entire year to spend that sort of money!!! :eek:

Due to this dispute (and many others) I owe three years service charges and have been threatened with all sorts including "a visit from the bailiffs" (illegal). HOWEVER I am withholding money lawfully as our invoices were not in the prescribed format and I suspect you are not. If not I would strongly advise you follow the law which is to pay the charges and then dispute via an LVT: withholding charges puts YOU in breach of contract. Read this website thoroughly alongside your long lease to understand the legal position.
http://www.lease-advice.org/publications/documents/document.asp?item=14

NAR

Can't see anyone wanting to purchase with that size of maintenance fees irrespective.

Richard_Webster

Shut up and pay up.

Otherwise your buyer's solicitor will say:

1. I don't care what your case is I don't want my clients being saddled with the liability; and
2. That's interesting - the freeholder/managing agent is being unreasonable - I'd better tell my client that and he may not want to buy the place.

It is only worth fighting these points when you are not selling and you have plenty of time and the determination to see the thing through to the bitter end with the LVT making a determination that the charge is unreasonable. This al assumes you have a good case anyway.