BR - OK to include leasehold service charges?

banksshouldworry

I'm going BR soon and am doing a SoA so going through what I owe (oh no!!!!!!).

I owe thousands of pounds in overdue service charges to the local council as I am a leasholder with a mortgage.

According to the Insolvency Service I can include the debts from my overdue services charges in the BR, but there's a fly in the ointment.

Ive also fallen behind with the payments for buildings insurance which is invoiced seperately by the council but it still goes on the same payment reference number as the service charges.

I phoned the council and paid the current years building insurance so that I am at least up to date for the year. The guy in payments also made a note on the system that this payment was specifically for the building insurance invoice and not the service charges.

Apparently having buildings insurance is part of the requirements of my mortgage.

Will I still be able to put the service charges debt on my BR petition?

Will I need to pay the arrears for the previous years buildings insurance invoices or will being up to date just for the current year be OK?

Anyone been in a similar position or has some good advice?

debt_doctor

Hi,


You will be able to include the leasehold service charges and any invoices for previous buildings insurance in your BR. (although I would have thought if you didn't pay the buildings insurance you would not have been given any cover, so unlikely to owe anything)


DD

banksshouldworry

Thanks DD.

I have an arrangement with the council to make token payments each month to the payment reference number which I have kept up with for years - and it's applied to just one payment reference number which is the same for the service charges and the buildings insurance (even they are just invoiced separately at different times of the year).

A guy at the insolvency service said to contact my mortgage company but I don't want to tip them off on my BR just yet as I have an overdraft on a C/A with them. Can they act to roll the O/D into the mortgage prior to BR?

Is it the mortgage company, the council or someone else who can give me the right answer on whether or not I can include the service charges as part of the BR without any negative consequences (by being in potential breach of the mortgage agreement because I didn't have up to date buildings insurance throughout the term)?

Or if I include the service charges in the BR and they prove problematic, can I take them out again in talks with the offical receiver if necessary?

Sorry I am confused on this.