Brady success story highlights responsibility for arrears when a flat is sold

In a case where a managing agent client’s previous solicitors had hit a brick wall on a tricky service charge case, Brady Solicitors’ Sam Andrews applied his expertise to provide a clear-cut solution.

When a leaseholder struggled to meet his mortgage payments and his flat was at risk of being repossessed, his father had stepped in to help out, and bought the property. What he didn’t know however was that there were also some substantial service charge arrears outstanding on the property. His son hadn’t told him and neither had the conveyancing solicitor (not a Brady one, of course) identified the arrears during the purchase process.

The managing agent sent the demand for payment to the leaseholder (the father). He refused to pay on the basis that the arrears were incurred before he owned the leasehold and therefore not his responsibility. This went on for some time, with the managing agent’s solicitors being unable to recover the arrears, which were now starting to mount up.

Who should pay arrears when a flat is sold?

The managing agent decided to do his own research around who should actually be responsible for paying the arrears and stumbled across a recent Brady Solicitors blog covering liability for service charge arrears when a flat is sold.

He subsequently instructed us on the arrears and Sam Andrews took on the case, quickly establishing that the father was indeed responsible for paying the arrears. With clear communications and intelligent negotiations Sam was able to secure full settlement of the arrears within 14 days.

Our client was happy to have avoided going to court and pleased with the speedy results. Whether or not the father will be seeking reimbursement from his son for the unpaid arrears remains to be seen…

Need expert help with recovering service charge arrears?

Talk to Brady Solicitors’ friendly team of property management experts on 0115 985 3450 or click here to send us an email.

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With hundreds of years’ worth of combined experience, our experts have dealt with nearly every leasehold property matter you can imagine. If you’re currently in need of legal support or advice, please get in touch.

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