Utilities after Repossession.

KITTENPOP9

Hi, Not sure if I'm posting on the right forum but am desperately hoping someone can offer some advice. To cut a long story short me and hubby went bankrupt in 2010, struggled to pay mortgage since and inevitably our house is going to be repossessed next month. Can someone tell us what will happen to our gas and electricity when we actually leave our property? We have informed our supplier about the repossession and this what they replied to us: "Your account will remain open and you'll continue to be billed until the property is sold and ownership is completed"! Is this correct? I was of the understanding that once our lender has possession of the property then we are no longer responsible for those utilities! Please help! Many thanks in advance.

Neil_Jones

An older post from 2010 from the Consumer Action Group forums says:

Usually everything is turned off and drained down. If there are any outstanding bills from prior to possession the owner would be liable and it would be down to the utility company to trace and pursue them for the sums outstanding. If for any reason utilities were kept on after possession e.g. electricity to enable viewings after dark to increase saleability (particularly relevant at this time of year), the mortgage company would pay but add the costs to the outstanding balance so ultimately it would still be the owner who paid the bill.

This is from experience from a few years ago so things may have changed but as the shut off and drain down was for safety reasons as much as to avoid costs (electricity & gas increase fire risk and there is the possibility of water leaks or frozen pipes if the water system isn't drained down) I don't think things would have changed much.

This may give you a general idea.

macman

Unless someone else is in occupation and using the supplies, then the legal owner continues to be responsible for the standing charges until such time as the property is sold.
You remain responsible for the mortgage payments, utilities and buildings insurance until sale.
I think you are confusing possession with ownership.

LewisHamilton

I'd ask the bank to see if the supplies will be capped so no usage is being used.

Take final readings anyway on your last day in the property and turn everything off.

However, I would say that you are still responsible for the utility bills after repossession and I find myself agreeing with macman. For example, if the bank sells the property and it covers the outstanding debt on your mortgage and other costs, and there is a surplus, that surplus goes to you. Therefore, I'd say technically you still have an interest in the property.

Although it might seem unfair and I'm not 100% sure, I think you would be responsible for the utility bills especially if its a voluntary repossession.

KITTENPOP9

Thanks everyone, will make more enquiries and update later!

macman

Capping off or disconnecting the supplies will reduce the auction value of the property, as the buyer will have to pay for reconnection. Supplies should of course be turned off when you leave.