Service Charge Liability - Passed to Renter?

pinklady21

Has this lady taken legal advice on the terms of the will?

It seems to me (and I am not a lawyer) that this lady has been left in very unfortunate circumstances due to the death of her landlord.
She had a secure tenancy, with her rent being paid by HB. The landlord has tried to make provision for her in his will by ensuring that she can remain in the property, but unfortunately this apparent kindness has backfired due to the demands being made to her for repairs costs.

In her position, I would be seeking advice on whether the terms of the will can be refused or set aside somehow, and to revert to the tenancy as previously.

If not, can payment of bills be deferred until after she leaves the property, it is sold and the amounts deducted from the proceeds?
(Again, I am not a legal expert, but it seems quite unfair for her to be burdened with all the costs, and yet not be able to realise any benefit from the asset.)
Clearly it would help if there were some sort of tenancy agreement, but a written agreement does not need to exist for a tenancy to be created.

Worst case scenario is that she has to leave her home. Has she applied to her local Council or Housing Association for alternative accommodation? With her age and health issues, she may be eligible for sheltered housing or similar if there is any in the area.

It seems unlikely that the current inheritors would be interested in co-operating with any arrangement that might help her.
I assume that they wish possession of the property to sell it?
Best of luck.

G_M

pinklady21 wrote: »

In her position, I would be seeking advice on whether the terms of the will can be refused or set aside somehow, and to revert to the tenancy as previously.

The previous owner died "died 2 or 3 years ago". I imagine that Probate has been granted and the Estate has been wound up.


The time to set aside this bequest was back then, not long after she has accepted (and benefitted!) from it.

NeilCr

Worth remembering that if she hasn't been claiming HB there is a strong likelihood that she will now have to look at Universal Credit

You can check by postcode here

https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/Check-if-youre-eligible-for-Universal-Credit/

I'd echo the suggestion to ring Shelter re her eligibility for service charge payment.. You could also talk to the local council (if HB) or DWP (if UC) on a general basis but their advice (especially DWP) can be hit or miss - paricularly if the query isn't straightforward

ian_h

G_M wrote: »

The previous owner died "died 2 or 3 years ago". I imagine that Probate has been granted and the Estate has been wound up.


The time to set aside this bequest was back then, not long after she has accepted (and benefitted!) from it.

I think you've missed the point somewhat she HASN'T benefited from it, before she was "rent free" due to HB in her current situation she has been funding the maintenance, Insurance and service charges our of her pension with no HB so has been financially worse off. She now doesn't have £10k being demanded for roof repairs.

D_M_E

As the flat in question forms part of the deceased's estate, and the trustees have not yet sold it, I don't think the estate has been wound up yet.

If she has no money or no assets with which to pay large demands then would such demands be passed to the owner(s) whoever they are - the trustees or beneficiaries?
Or, as someone above suggested, by way of charges against any sale?

Also, could the wording be interpreted in different ways, for example pay for insurance and everything to do within the flat and not any external costs such as the roof?

Could be worth pointing out to the current owner that the lease could be forfeited for non payment?

Murphybear

NeilCr wrote: »

Worth remembering that if she hasn't been claiming HB there is a strong likelihood that she will now have to look at Universal Credit

You can check by postcode here

https://www.citizensadvice.org.uk/benefits/universal-credit/before-you-apply/Check-if-youre-eligible-for-Universal-Credit/

I'd echo the suggestion to ring Shelter re her eligibility for service charge payment.. You could also talk to the local council (if HB) or DWP (if UC) on a general basis but their advice (especially DWP) can be hit or miss - paricularly if the query isn't straightforward

Universal Credit? She's 75. She will have a state pension which can be topped up by Pension Credit. Is that what you meant

pmlindyloo

So the general consensus of opinion seems to be that she may be eligible for help through HB for the service charges. You can telephone the local council about this.

The big sticking point for her is the payment for the repairs to the roof.

I really think you need legal advice about this.

From a lay person's point of view the actual wording of clause 1 needs clarification.

You may be able to access some free legal advice from CAB (if the have a visiting local solicitor) and they could also help with claiming HB for the service charges.

If the local CAB does not have the services of a local visiting solicitor then here's a link for possible further help.

Shelter and AgeUK should be able to signpost you to specialist/legal help.

https://www.ageuk.org.uk/information-advice/money-legal/legal-issues/legal-advice/

NeilCr

Murphybear wrote: »

Universal Credit? She's 75. She will have a state pension which can be topped up by Pension Credit. Is that what you meant

Yep.

Mea Culpa.

Got that one wrong.

Thanks for the correction.

Sorry OP this is what I should have been referring to

https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/changes-to-the-benefit-system/

As others have said ring the local council re Housing Benefit

PasturesNew

This is way too complex... needs a solicitor.

She has the right to stay there while ...
But she's not able to pay the costs
So they have the right to remove her and sell it
If they don't sell it, they'll lose it if the freeholder repossesses it for failing to pay the bill the tenant was expected to pay (under the terms of the will).

Only chances are:
1/ The costs are deemed to not include the service charges/roof costs.
2/ The beneficiaries are "charitable" and take over the costs, giving her a standard AST at market rent in return and hoping that the amount will be within her financial ability to pay.

The beneficiaries can't take her to court for the money they end up having to pay out when they get her out - as she has no money, so that'd be daft for them to do that... so she might get out of it "scot free" so to speak on that front.

See a solicitor - get them to find a law that will define the terms of the Will in her favour (or advise her that there's no way out of the liability and she'll have to go down the "handing it back" process).

In the meantime, get her on the council housing list "just in case", she doesn't have to get to that stage, nor look for/bid on properties, but she needs to get her name on the list as part of the criteria/decision making will be "date signed up" based and if it's her or an identical contender then it'd go to the one on the list longest.

moneyistooshorttomention

From what Pastures says - I wonder if the owner of the flat may actually be in a very awkward situation themselves.

That being - that the tenant is the one due to pay towards the roof cost. Now if tenant doesnt pay this bill (which it does very likely is actually down to her) - then the flat-owner/her landlord may find themselves in the position of having THEIR flat whipped off them and sold because of someone else's actions (not their own - as they aren't responsible for paying this bill by the look of it).

Actually - put like that and the flat-owner/landlord isn't in a very good position either. It looks as if there could be a forced sale of their asset because of someone else's debt. With that - this flat-owner/landlord may find their flat being sold off when they intend to keep owning it or find it's sold for less than the market value.

So - actually neither of them are in a very good position by the look of it.

Guess the type of solicitor wanted is one that will perform a mediator role between the two of them - to try and find a mutually acceptable solution between them both.