Are we liable for repair costs on deceased relative's property?

Mrs_Money

Sorry, this is a bit long but here goes-
My husband is an executor for my FIL's will. FIL lived (owned) a flat in a purpose built 60s block. He also owned a share in the freehold - so the owners of the flats have their own management company. He paid a sum every month to cover water, sewage and maintenance costs. Now these payments have ceased until we have Grant of Probate - but we are being "pushed" to pay them. There also other bills that my FIL was liable for - something to do with the lift. These are not small sums of money and for other complicated reasons we are not able to put the flat on the market for - maybe 6 months- let alone how long it eventually takes to sell.

Another problem is that it has been found out that there are expensive external building works needed on the block of flats - my FIL's share of this may well run into thousands. Put briefly - there's just about no money in the estate - enough to pay a few small bills and for the funeral - how do we stand in all this?
Obviously if we were allowed to just delay these building/maintenance costs until the sale of the flat and then settle up - it would (may?) be ok - but a flat with potential building costs hanging over it probably won't sell quickly!
Any thoughts greatly appreciated!

McKneff

If there are no assets to pay any debts, the debts die with the deceased.

No one else is liable for them.

PasturesNew

McKneff wrote: »

If there are no assets to pay any debts, the debts die with the deceased.

No one else is liable for them.

Ah, but the flat is the asset ... the OP is up !!!!!! creek because until the flat's sold there's no money to pay the amounts which are being demanded.

Mrs_Money

PasturesNew wrote: »

Ah, but the flat is the asset ... the OP is up !!!!!! creek because until the flat's sold there's no money to pay the amounts which are being demanded.

Yes.. exactly - pretty awful predicament - I think things are going to get rather difficult!

Richard_Webster

Tell management company they will get paid when flat is sold - then family get what's left out of sale proceeds.

sunshinetours

PasturesNew wrote: »

Ah, but the flat is the asset ... the OP is up !!!!!! creek because until the flat's sold there's no money to pay the amounts which are being demanded.

If there are no realised funds in the estate until the hosue is sold then the management company will have to wait. If there is no surplus left in the final estate (depending on final sale price) I can't see that the management company is going to get anything as the debt surely will lie with the deceased. Can't see how the Op is up a certain creek in this case?

McKneff

mY apologies, completely forgot about the flat being an asset.
Doh.....

silvercar

sunshinetours wrote: »

If there are no realised funds in the estate until the hosue is sold then the management company will have to wait. If there is no surplus left in the final estate (depending on final sale price) I can't see that the management company is going to get anything as the debt surely will lie with the deceased. Can't see how the Op is up a certain creek in this case?

Normally the freeholder won't let new owners (leaseholders) be registered as leasing the flat until charges are cleared. So the money from the sale needs to go first to the freeholder/ management company to pay the outstanding charges to allow the new leaseholders to be registered. Providing the flat's value is greater than the sum of all the charges there won't be a problem. If there is a problem, then the simplest action is to relinquish the lease; so the flat goes back to the freeholder, who will sell it usually on a new lease.

It is rare for the value of the property to be more than the charges on it, only likely to occur if there is a large mortgage as well as a build up of charges. In this case the lender could repossess and sell or hand it to freeholders.

Fire_Fox

Mrs_Money wrote: »

Sorry, this is a bit long but here goes-
My husband is an executor for my FIL's will. FIL lived (owned) a flat in a purpose built 60s block. He also owned a share in the freehold - so the owners of the flats have their own management company. He paid a sum every month to cover water, sewage and maintenance costs. Now these payments have ceased until we have Grant of Probate - but we are being "pushed" to pay them. There also other bills that my FIL was liable for - something to do with the lift. These are not small sums of money and for other complicated reasons we are not able to put the flat on the market for - maybe 6 months- let alone how long it eventually takes to sell.

Another problem is that it has been found out that there are expensive external building works needed on the block of flats - my FIL's share of this may well run into thousands. Put briefly - there's just about no money in the estate - enough to pay a few small bills and for the funeral - how do we stand in all this?
Obviously if we were allowed to just delay these building/maintenance costs until the sale of the flat and then settle up - it would (may?) be ok - but a flat with potential building costs hanging over it probably won't sell quickly!
Any thoughts greatly appreciated!

Normally inability to pay is not an excuse in the eyes of the law, but clearly it is more complex where an estate is unable to pay rather than a leaseholder. Usually service charges are due in advance and major works are due in arrears, so depending on timescales and the terms of the long lease you may well have breathing space to with the external building works.

If a leaseholder defaults on service charges the normal procedure is to apply through the court system; where service charges are under dispute the case is heard at a Leasehold Valuation Tribunal. Arrears can be lodged against a mortgage or a charge could be put on the property, not sure how being share of freehold changes the situation tho.

I think you should consider making use of LEASE's excellent free telephone advice line, and possibly considering offering their mediation service if you feel it would help keep the wolves from the door:
https://www.lease-advice.org

I don't understand why the property cannot be put on the market for six months, but appreciate after that as executor you have a duty to get the best price. If there were any way around this given the service charge arrears, it may be wise to put the flat up for auction. This would attract the sort of buyer who is not phased by the major works, and shift the place fast.

Mrs_Money

Thanks for your thoughts- the property cannot be sold yet due to the fact that the widow, who is in a care home, needs a new financial representative (deputy) appointed (takes around 6 months to be arranged) - as I said - complicated!

getmore4less

How was the property owned?
Joint,common,outright