help, freeholder demanding money without invoices

deebee33

I am selling my flat in London and as part of the sale have asked the managing agents for any outstanding amount on my service charge account to finalise the sale.

Out of the blue, they have reinstated an historical claim for arrears from before 2005 from another firm of managing agents who previously managed the flats for the previous freeholder!

They have admitted they have no paperwork for this so called arrears debt, it was never included on my previous annual demands, yet the freeholder is demanding this money (14k) be paid by me before I complete the sale of the flat.
The managing agents have confirmed they think this is unrealistic, yet are acting on their clients wishes.

I am held over a barrel, my buyers are getting antsy with the delay and I have a week to exchange, I don't know what to do.
We have offered to let my solicitor keep funds in escrow until the freeholder provides the documentation, but my buyers solicitor refused to accept this option.

I feel I am being blackmailed over some fictional arrears that where never even owed to the current managing agents or the current Freeholder.
What can I do????

rosyw

deebee33 wrote: »

I am selling my flat in London and as part of the sale have asked the managing agents for any outstanding amount on my service charge account to finalise the sale.

Out of the blue, they have reinstated an historical claim for arrears from before 2005 from another firm of managing agents who previously managed the flats for the previous freeholder!

They have admitted they have no paperwork for this so called arrears debt, it was never included on my previous annual demands, yet the freeholder is demanding this money (14k) be paid by me before I complete the sale of the flat.
The managing agents have confirmed they think this is unrealistic, yet are acting on their clients wishes.

I am held over a barrel, my buyers are getting antsy with the delay and I have a week to exchange, I don't know what to do.
We have offered to let my solicitor keep funds in escrow until the freeholder provides the documentation, but my buyers solicitor refused to accept this option.

I feel I am being blackmailed over some fictional arrears that where never even owed to the current managing agents or the current Freeholder.
What can I do????

Someone correct me if I am wrong, but surely this supposed debt, being from "before 2005" would be unenforceable as it would be statute barred, even if the could provide the paperwork!
How long have you owned the flat? surely if you bought it after 2005 then your vendor would have responsible for paying this prior to completion?

deebee33

I bought the flat in 1994. the paperwork was never produced by the previous agent for this so I had it written off in meeting with them in 2005, suddenly the new lot have reintroduced it out of nowhere

Marktheshark

I think you need another solicitor.
What on earth is this one doing ? he should have shut you this down same day.

G_M

rosyw wrote: »

Someone correct me if I am wrong, but surely this supposed debt, being from "before 2005" would be unenforceable as it would be statute barred,

Limitation Act 1980

eddddy

Marktheshark wrote: »

I think you need another solicitor.
What on earth is this one doing ? he should have shut you this down same day.

Hi Deebee33

If I were to be cynical...

Perhaps the freeholder has a bunch of old outstanding service charge claims - which they issue to each leaseholder, just as they are about to exchange contracts for a sale.

Even if the claim has little or no chance of succeeding, 99% of buyers would not buy the flat with an ongoing dispute over £14k - which they might have to pay.

So the freeholder might see you as having two options:

1) Negotiate a settlement with the freeholder (i.e. pay them off), in order to exchange contracts.

2) Fight the freeholder and probably lose your buyer in the meantime. (Although you would probably win your fight with the freeholder.)


But if you offered a £14k retention to your buyer, I would have thought that would be acceptable. Maybe there are more issues.

Unfortunately, this is also highlighting that your freeholder is a bit of a rogue - which might start to scare off your buyer.

deebee33

not cynical, you are spot on mate!:T

eddddy wrote: »

Hi Deebee33

If I were to be cynical...

Perhaps the freeholder has a bunch of old outstanding service charge claims - which they issue to each leaseholder, just as they are about to exchange contracts for a sale.

Even if the claim has little or no chance of succeeding, 99% of buyers would not buy the flat with an ongoing dispute over £14k - which they might have to pay.

So the freeholder might see you as having two options:

1) Negotiate a settlement with the freeholder (i.e. pay them off), in order to exchange contracts.

2) Fight the freeholder and probably lose your buyer in the meantime. (Although you would probably win your fight with the freeholder.)


But if you offered a £14k retention to your buyer, I would have thought that would be acceptable. Maybe there are more issues.

Unfortunately, this is also highlighting that your freeholder is a bit of a rogue - which might start to scare off your buyer.