Property Charges and Auction purchase..

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    Property Charges and Auction purchase..

    Hi all, could do with some advice on this. Appologies if this is a 'numpty' question but I could do with getting it clear. Looking to purchse a property at auction which has a charge set against it by a local council for 11K. This was for making safe a dangerous gable end. The owner has been made bankrupt and the sale is being overseen by accountancy firm. On the legal pack it mentions that it is not known if any VAT element is due on the property (the owner is a bankrupt builder, this is one of his properties). Can any of these 'charges's be passed ontor to the new buyer? What if the house sale doesn't generate enougth income to clear the charges/possible VAT element.

    Any idea of typical 'conveyencing' fees to deal with the sale (no mortgage required).

    Thanks in advance...

    #2
    The cost mentioned is probably a Local Land Charge. It binds the property even if this changes hands.
    So build into your costings the amount payable to the Council. Unless V accepts contractual obligation to pay it, you'll have to!
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Thanks Jeferey, what about the VAT side of things. Can they chase a unsettled bill througth new owners of the property. Seems a bit draconian. Thanks

      Comment


        #4
        Originally posted by AVS View Post
        Thanks Jeferey
        Who's that, then?

        Originally posted by AVS View Post
        what about the VAT side of things. Can they chase a unsettled bill througth new owners of the property. Seems a bit draconian. Thanks
        Yes (Local Land Charge); yes (VAT, if payable on the purchase price).
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment


          #5
          Sorry, I didn't make myself clear. They may persue VAT on this property if due, at sale point. Can they chase other VAT owed for his business interests through this sale as well. ie I get landed with a , at yet, undisclosed sum at a futre date.

          What about a 'conveyancer', can one be poached from here or is it a no/no

          Thanks JEFFREY...

          Comment


            #6
            Originally posted by AVS View Post
            Sorry, I didn't make myself clear. They may persue VAT on this property if due, at sale point. Can they chase other VAT owed for his business interests through this sale as well. ie I get landed with a , at yet, undisclosed sum at a futre date.

            What about a 'conveyancer', can one be poached from here or is it a no/no
            What you pay on completion is conclusive. No extra is due, unless the contract says so.
            if you want me to assist professionally, please send e-mail.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment

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