Question about property from auction

szyblaszczyk

Hello! I'm interesed in buying property from auction and I'm looking at legal pack right now which worries me a bit. Just want to make sure that I understand it in right way. Does it mean that there is about 10 000 £ to pay to debtors/creditors if I buy this property? Document is named "Financial Statement 2016".



26. The Property is sold subject to any and to all rights of occupation, interests, wayleaves, easements and/or quasi-easements, covenants and reservations upon whatever terms whether created formally or informally or whether or not all or any of the same have been disclosed by the Seller so far as all or any of the same remain in force and affect the Property.

27. The Property is sold subject to any and to all overriding interests wayleaves rights, easements and quasi-easements upon whatever terms existing on or before exchange hereof whether created formally or informally or whether or not all or any of the same have been disclosed by the Seller so far as all or any of the said interests wayleaves rights easements and/or quasi-easements (if any) remain in force and affect the Property.

G_M

I don't think so.

1) That looks like the accounts for the management company, so that is what they have or owe.

2) the £9,582 which I assume you are referring to is what they are owed - probably the service charges payable in that year by all the flats under their management (eg if 10 flats, then £1K each). [note: where are the accounts for 2017?]

But your solicitor will explain. Since you appear not to be an expert, you must get the legal pack checked by your solicitor before the auction.

szyblaszczyk

Absolutely I'm not an expert and I will send legal pack to solicitor before any bidding but I'm trying to look for any issues in legal packs so I can eliminate properties by myself without paying for solicitor's check.

For now, I'm just wondering if it's worth to at least see the property as there is about 50-60 miles to go there. And for what you said, probably it's still worth going there.

Freecall

The balance sheet shows that the company has assets (stuff of value) of £10.5K - which is made up of mainly service charges yet to be paid to it along with a bit of cash and...

...it also has creditors (stuff that it will need to pay) of £9K.

Take one from the other and the company is 'worth' what is left. In this case a positive figure of £1.5K.

So no, there was no net payment due on the day the balance sheet was drawn up.

Although this is probably still the case don't forget that the most important figure on any balance sheet is the one at the top - the date!

With accounts going back a quarter of a century though, you have a good indication of how well things have been run historically.