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Property Law? Service Charge Balancing Demand after buying flat



 
 
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  #1  
Old January 23rd 07, 07:20 PM posted to uk.legal.moderated
jacky.evanno@btinternet.com
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Posts: 1
Default Property Law? Service Charge Balancing Demand after buying flat

Hi,

I bought a leasehold flat in October 2006. The service charges for the
year ending september 2006 were paid accordingly during that year by
the previous owner. The freeholder is now asking me to pay for extra
costs which were not budgeted but incurred during that period.

Who is meant to pay for those costs?

Should this have been picked up during the conveyancing?

Any help appreciated.

Regards,
J.


  #2  
Old January 24th 07, 03:10 PM posted to uk.legal.moderated
Ste
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Posts: 214
Default Property Law? Service Charge Balancing Demand after buying flat

On Jan 23, 7:20 pm, wrote:
Hi,

I bought a leasehold flat in October 2006. The service charges for the
year ending september 2006 were paid accordingly during that year by
the previous owner. The freeholder is now asking me to pay for extra
costs which were not budgeted but incurred during that period.

Who is meant to pay for those costs?


With service charges, it seems to me that the liability arises when the
freeholder demands the charge from the leaseholder - the fact that the
actual work took place before you owned the lease doesn't necessarily
have a bearing, since you have taken on the lease and it's liabilities.


  #3  
Old January 25th 07, 11:55 AM posted to uk.legal.moderated
GB
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Posts: 2,329
Default Property Law? Service Charge Balancing Demand after buying flat


wrote in message
oups.com...
Hi,

I bought a leasehold flat in October 2006. The service charges for the
year ending september 2006 were paid accordingly during that year by
the previous owner. The freeholder is now asking me to pay for extra
costs which were not budgeted but incurred during that period.

Who is meant to pay for those costs?

Should this have been picked up during the conveyancing?

Any help appreciated.

Regards,
J.


What does your contract say?




  #4  
Old January 25th 07, 01:25 PM posted to uk.legal.moderated
Steven Sharp
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Posts: 11
Default Property Law? Service Charge Balancing Demand after buying flat

Speaking from experience as a leaseholder AND the management company (I
do both), but IANAL and therefore legal form may differ:

I bought a leasehold flat in October 2006. The service charges for the
year ending september 2006 were paid accordingly during that year by
the previous owner. The freeholder is now asking me to pay for extra
costs which were not budgeted but incurred during that period.

Who is meant to pay for those costs?

Probably you. We discovered works that needed doing to our flats that
should've been done by the builder. Maybe we could've pursued but for
£100 it wasn't worth it. I've always taken it as being the date the
service charge is demanded, hence why flats should build up sinking
funds to prevent this sort of thing (but I bet a lot do).

Should this have been picked up during the conveyancing?

Perhaps. Ask your solicitor (he/she will answer in the negative of
course).

Good luck,


  #5  
Old January 25th 07, 03:40 PM posted to uk.legal.moderated
Nick
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Posts: 837
Default Property Law? Service Charge Balancing Demand after buying flat



On Jan 24, 3:10 pm, "Ste" wrote:
On Jan 23, 7:20 pm, wrote:

Hi,


I bought a leasehold flat in October 2006. The service charges for the
year ending september 2006 were paid accordingly during that year by
the previous owner. The freeholder is now asking me to pay for extra
costs which were not budgeted but incurred during that period.


Who is meant to pay for those costs?With service charges, it seems to me that the liability arises when the

freeholder demands the charge from the leaseholder - the fact that the
actual work took place before you owned the lease doesn't necessarily
have a bearing, since you have taken on the lease and it's liabilities.


Any clawing back should have been agreed between your solicitors.

The service charge that I paid on the flat that I sold was paid in
advance. I did have about £100 outstanding on the balance for that
flat which my solicitor passed on to me. I paid it despite the fact
that there was no agreement that I know of to deal with outstanding
amounts. I believe that my solicitor has held some money back from my
account for such purposes.

(Solicitor was also solicitor for managing agents - conflict of
interest?)

With the flat that I bought the service charges are in arrears - the
vendor refused via her solicitor to allow my solicitor to hold back
£500 for service charges resolution. This was just as we were going to
exchange contracts. The solicitor refused point blank - and I had to
accept it otherwise we wouldn't have exchanged - all for £500 being
held back.

She left a bottle of wine and a card when I arrived but it did leave a
bitter taste.

Nick


  #6  
Old January 25th 07, 04:10 PM posted to uk.legal.moderated
The Todal
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Posts: 8,901
Default Property Law? Service Charge Balancing Demand after buying flat


wrote in message
oups.com...
Hi,

I bought a leasehold flat in October 2006. The service charges for the
year ending september 2006 were paid accordingly during that year by
the previous owner. The freeholder is now asking me to pay for extra
costs which were not budgeted but incurred during that period.

Who is meant to pay for those costs?


Without doubt, *you* do.



Should this have been picked up during the conveyancing?

Any help appreciated.


Your solicitor should have asked for a receipt showing that all payments due
up to the date of completion, had been paid. An answer such as "this was the
last bill from the agents and we paid it" would probably be regarded as
sufficient, by many solicitors. In your position I would be inclined to
approach the seller and ask politely for reimbursement. You might not have a
forwarding address for the seller in which case you'd have to go through the
seller's solicitors. And of course the seller might say get lost.

By all means ask your solicitors to explain why this has arisen and why they
didn't prevent it, and they might get all defensive or they might perhaps
offer some payment to you. No harm in asking.



 




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