Service Charge Deficit with no Retention Held

implus

Hello,

I purchased a leasehold flat last year and received a service charge request for a deficit pertaining to the period where I was not the leaseholder. My solicitor had asked for a retention to be held but the seller's solicitor declined as in the prior 3 years there was an almost nil deficit.

I have paid previous leaseholder's share of the service charge deficit to avoid incurring administration charges and my solicitor has requested the amount from the seller's solicitor who has now informed my solicitor the previous leaseholder is refusing to pay.

Do I have legal ground to request this amount through the small claims court?

Any input welcome - thanks a lot!

cattie

Why not give these people a call? https://www.lease-advice.org/
It's a government funded agency dealing with most aspects of owning residential leasehold property.

Fingers crossed you'll be able to claim the money back as to me it'd be the pits having to pay costs that should have been the responsibility of the previous owner.

I do know that when you buy leasehold you do become liable for any outstanding service charge/ground rent owed by the previous owner if solicitor has not ensured that there was no outstanding payments due prior to completion & a retention made if there was a likelyhood of such payments being due.

I wonder if your solicitor had made enquiries with regard to possible outstanding charge with the managing agents who handle the affairs of the property?

[Deleted User]

If you zgreed to purchase without a retention against a service charge deficit, I'm afraid your only option is small claims.

eddddy

implus wrote: »

Do I have legal ground to request this amount through the small claims court?

It depends what your contract said when you purchased.

If the contract says that the sellers would pay a share of any service charge deficit, then you can claim on that basis.

But, if the sellers refused to allow a retention, I strongly suspect that they refused to have a clause about paying towards any deficit as well.