Maintenance Charge Confusion

RichCH

Hi,

So I'm buying a leasehold property, in theory I should be exchanging contracts at the end of the week and the vendor is being very pushy about it. However, there is one thing that is currently very confusing and no one can give a straight answer.

A few years ago the two houses which make up the development were bought by L&Q, so they now own the freehold. My flat makes up one of the houses along with two others, and then the other house is currently being torn apart by L&Q to make 3 part-rent part-buy properties.

Back in 2011 the current owner of the flat I am purchasing was made aware that L&Q will be undertaking work on the building in the next few years. They are obviously developing the flats in the other house, but they have also renovated the grounds, put on a new roof, repaired all of the Stucco, replaced front doors and so on.

When I put in an offer on the place I was told by the Estate Agent (and confirmed by the vendor) that I would not be liable to pay anything towards the current works taking place, but of course if there were future works happening then of course I would have to pay for those. This was also confirmed when I received the Seller's Leasehold information pack, and he said that he was paying for the current works.

However, couple of things have come up. First of all I now know that the estimate for the work was £28,000 + Vat for our flat. But then in the paperwork from L&Q it says that it was capped at £5000 + VAT per year. But it states on there that the invoices will be sent out after the work is completed, and the work is due to be completed at the end of May, by which point I will be taking ownership of the flat. But then it also mentions something about the final amounts won't be known until the September 2013 statement.

All we have currently is this written in the leaseholder information pack that he's paying for the maintenance work, and my solicitor can't seem to give me a straight answer. I've tried calling the freeholder but they can't talk to me about it for obvious reasons. But what I don't understand is how can he be paying for it if the invoices aren't going to come through until I will actually own it?

And also, if he has stated on the leaseholder information pack that he is paying for the maintenance (although he hasn't stated how much) is he allowed to sell the property to me and then expect me to foot the £33,500 bill?

bryanb

Don't exchange contracts till you have a definite answer in writing! Don't even sign.

RichCH

bryanb wrote: »

Don't exchange contracts till you have a definite answer in writing! Don't even sign.

Thanks, but yes, I'm not that daft!

I was just seeing if anyone knew of situations like this.

topbargainhunter

I would say that you need something written into the contract to say that the vendor will be paying x amount for the refurbishment and you are in no way liable.

I know with the flat I'm selling, the buyers solicitor insisted that my solicitor witholds £250 for a year in case I haven't paid all the management charges up to the date of the sale (this is written in the contract). I have paid them but I'm happy for this to happen so that the sale proceeds.

G_M

I would be very cautious about even accepting a written commitment that he'll pay - even in the Contract.

The reality is that in 12 months time, any invoice will go right to the bottom of his priority pile. He won't care.

Since it may be a significant £, if he has any money troubles (or just wants to whisk his other half away on a fancy anniversary), the invoice will be unpaid.

And you will be the one taking the flak from the freeholder.

Go in and discuss this with your solicitor face to face and get clear answers and clear advice.

This is one of the drawbacks of 'internet conveyancers', so I hope you are not using one!

mrsmchapman

Ifhe willing to pay this amount, could it not be written into the contract that upon completion the money be held by your solicitor until the invoice arrives. I would not trust the owner to actually pay the bill once you've signed any papers, so I would want this resolved before continuing.

princeofpounds

But what I don't understand is how can he be paying for it if the invoices aren't going to come through until I will actually own it?

I can think of two things here. Either there is a huge sinking fund which will be used to pay for the work (which would still lead to bills if they want to rebuild it afterwards). I think that's unlikely.

The other is that they are being slippery around the word 'current'. Yes, they will happily pay invoices now, knowing that it won't be billed until later.

Or maybe they are thinking of some kind of arrangement where they pay later, but I can't think what that would be.