Repossession & Service Charge Arrears

Somerset

We're going to have a look at a flat which is a repo. We've been told by the E.A. that there are reasonably large service charge arrears. Does anyone know if the seller ( mortgoror ) pays these off and sells the flat clean, or if these become the buyers responsibility to pay off ?

I know I can ask the E.A. but they seemed hazy on details when my O/H spoke to them.

Thanks

Doozergirl

If your offer is accepted, your solicitor should ask that the mortgage company clears the outstanding debt. Our solicitor did this as matter of course, though we have had to pay the shortfall on the previous year's service charge (by this I mean the expenses that exceeded the annual service charge) because it hadn't been billed when we bought.

I suppose the way to get around is to ask the management company as part of additional enquiries if there will be an anticipated shortfall and then ask the mortgage company to put some towards this aswell.

The EA will be hazy on the details as it's not really their thing, it's for your solicitor to sort out. On top of that, there is always the in-depth stuff missing from sellers information packs etc. because the mortgage company don't have the knowledge that the inhabitants would have had.

Doozergirl

Somerset wrote:

( mortgoror )

LOL. They're called the mortgagee...:cool:

Somerset

Doozergirl wrote:

LOL. They're called the mortgagee...:cool:

Lol ......... I always get them mixed up

cattie

You need to check this out properly with the solicitor beforehand as any such outstanding arrears can be inherited along with the purchase of the lease.

clutton_2

arrears can definitely be inherited by the new purchaser, so make sure your solicitor checks all this out thoroughly.