Lease Option on my Property

maximumme

I have a lease option on a property I own. The person that took on the lease has handed me back the keys three and a half years into a 5 year contract, saying he has had enough. I have found out that the property has been empty for 16 months, has been completely trashed, and no Council Tax has been paid on it for that period. It is going to cost me £6,000 to make the property habitable again, as well as £1500 Council Tax
Am I liable for the Council Tax and could I sue him for mismanagement of the property?

eddddy

You need to read the contract that you agreed to.

Is the person doing something that the contract allows, or are they breaching the contract?

If they are breaching the contract, you have the right to claim damages from them.


Any 'sensible' contract should protect you in these circumstances. But did you sign a contract drawn up by somebody else, perhaps without reading and understanding the contract? There are a lot of scammers involved in these activities.

maximumme

In my opinion he has breached the contract. I have just spoken to the solicitor who drew up the contract, and she said the contract states that he has to pay all taxes during the contract period. He says he is going bankrupt as he has no money - I don't believe him as he has 30 other properties. Why would he put all of his other properties at risk for the sake of one? How can I find out if a person has either filed for, on gone bankrupt?

aneary

Is it a person or a limited company that took the lease.

Is it a person or a limited company that has the other properties.

maximumme

It's a person that took the lease and has the other properties not a company.

aneary

You can check the individual insolvency register but that is once they have been made bankrupt.

mrschaucer

If your solicitor states your contract covers you re Council Tax, you need to show this to the Council without delay so they can pursue the correct person for the money owed.

maximumme

Thanks. I have just spoken to the local council, and they agree that he is responsible for the tax. They have asked me to send them a copy of the contract. Hopefully I will get this sorted soon. Thanks for all of your replies.

maximumme

I sent the council the contract. They called me today to say I was responsible for the council tax because my name is on the Land Registry. I told them I spoke to a solicitor who told me otherwise. They weren't interested - as I am the legal owner, the tax is down to me. I asked if they had read the contract, she said "No, but it's your name on the Land Registry". I told her that the leaseholders name WAS on the Land Registry but he removed it a 2 months ago. "We'll ring to tomorrow..."was her reply. Prior to this I had to explain to the council what a "Lease Option" actually was...