Anyone here well versed on Financial Charges?

ECYF

In relation to my first post about IHT. The flat which was left to my siblings and I has a financial charge, imposed by a court many years ago. The owner, who recently passed away and left the flat to us, owed £5,000 for works carried out which essentially went bad. The charge needs to be lifted so we can sell.

Are we still liable for this charge, as the flat is now in our names and the person who owed the money is no longer with us? We need to find out how much, if anything, was paid off, but we don't really know how to do this. Would we still be liable for any amount still owed?

Thank you.

Yorkshireman99

ECYF wrote: »

In relation to my first post about IHT. The flat which was left to my siblings and I has a financial charge, imposed by a court many years ago. The owner, who recently passed away and left the flat to us, owed £5,000 for works carried out which essentially went bad. The charge needs to be lifted so we can sell.

Are we still liable for this charge, as the flat is now in our names and the person who owed the money is no longer with us? We need to find out how much, if anything, was paid off, but we don't really know how to do this. Would we still be liable for any amount still owed?

Thank you.

How was the flat conveyed without the charge being removed?

da_rule

Yorkshireman99 wrote: »

How was the flat conveyed without the charge being removed?

Certain transfers are exempted when it comes to some charges (charges in relation to probate often fall into this category) and the charge just runs with the land until there is a non-exempted transfer - often a transfer for value.

You will be liable for the charge. The solicitor should contact the charge holder as part of the sale process and find out their requirements for discharging it. It will be dealt with in the same manner as paying off a mortgage.

ECYF

The Probate Executive has not been the most helpful, this is added to a list of other issues which have happened.

The Charge is clearly stated on the Title docs HE gave us, yet nothing was said. We are at the stage of having a buyer, they have a Mortgage Offer, we are still handling this charge - there were 2 others for mortgages, which I found out today have been removed. 2 calls have been put in to the personal charge, held by a couple, a letter has now been sent.

It will prove difficult how much money the original owner paid toward the debt he had, given how long ago it was, plus interest will have to be added on to whatever amount may be left, the couple the money is owed to may also no longer be alive. @da_rule