Buying flat - hopeful exchange this week... problems

xxmisslimberxx

Hello,

Myself & my partner are buying a leasehold flat (this has been going on for a while) Neither ourselves, or the vendor are in a chain but it seems to have taken a while longer than anticipated due to the vendor holding things up for a while.

We should be (finally) exchanging and completing this week & next- HOWEVER - im concerned now we have received all the docs from my solicitor to sign & read over. She pointed out she had not had a response yet about the outstanding ground rent/service charge bills that the management company had provided in the leasehold pack.

Basically, there is a final notice for the ground rent (£199) issued back in May (this was the month our offer was accepted but the flat had been on the market since April) and also the service charges (over £1400) have not been paid.

The estate agent informed me that the vendor said these will be dealt with on completion. And the solicitors between them will hold a sum of money?

My worry is - these are outstanding debts that he has been issued final notices for payment for. As we are taking over the lease, I fear we will become responsible for these debts & after exchange of deposit, he could potentially turn around & refuse to pay the outstanding?

Anyone have any experiences with this? I dont understand why the vendor cant pay these prior to exchange & then there would be no problems.

Thanks in advance for any replies

G_M

Sounds like you won't be "exchanging and completing this week & next"

This needs resolving before you Exchange.

wwtrend

Make sure you have checked if any charges, not included in the management service charge are on the horizon. Get what is included in the service charge absolutely spelt out. Also someone I know purchased a leasehold with the intention of renting out. The vendor and solicitor knew that was the intention. Unfortunately permission to let had to be obtained from the freeholder and they were asking an unreasonable amount of money for each and every tenancy agreement which meant there was no chance of breaking even let alone making any profit. Be sure you know what permissions you need from the freeholder in case it interferes with any of your future plans. Another leaseholder I know who did rent out their flat were prohibited by their freeholder of letting their flats out for the Olympics and they were in a prime position near to the stadium.

If the management company is struggling to get the normal service charge out of leaseholders they may have bigger repair projects that might have been put on hold but are getting more urgent.

tim123456789

xxmisslimberxx wrote: »

Anyone have any experiences with this? I dont understand why the vendor cant pay these prior to exchange & then there would be no problems.

Thanks in advance for any replies

because he needs your funds to pay them.

Your solicitor should sort this out. He should not hand over the money on completion date unless he knows that these outstanding charges have been cleared (and if he does, you sue him)

tim