Charges on a prospective property purchase?

Charges on a prospective property purchase?

by Readers Question

Guest Author

10:25 AM, 7th October 2016, About 8 years ago 2

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I’m new to this and appreciate all comments/ opinions in advance!

In a nut shell I’ve seen a couple of properties that appear to be reasonably priced, because they have charges on them. One of them the current owner is bankrupt and the other one though is freehold, but has to pay a perpetual rent (nominal amount).

My question is how do you find out how much is charged on the property? Can you buy out the perpetual rent?

I do not want to incurred any unnecessarily before I committed to either property.

Many thanks


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Ricky jones

13:54 PM, 10th October 2016, About 8 years ago

I am in a very similar situation, i have made an offer on a dwelling that has a council charge on the property. The vendor is happy with the offer on the distressed property but has told me that the council have a charge on the property due to his Mum being in care. His Mum sadly has now passed away but the council have still got a charge on the property.
Any advice or help would be appreciated.

Best Regards,

The Enforcer

15:23 PM, 10th October 2016, About 8 years ago

There are a number of different charges that can be applied to a property, the simplest arises where the owner owes a person (local authority) money but didn't pay the invoice.

In this instance your money goes to your solicitor, then to his solicitor. This solicitor then pays the charges and passes whatever remains to the owner.

The problems usually occur when no searches are done on Local Land Charges and the house gets sold without the local land charge being paid. As the charge is on the land, it passes to the new owner. Often happens at auctions.

In the care example, the proportionate amount of the care cost will be paid to the care authority, the remainder being paid to the seller.

Some mortgage holders have a charge on the property which means they have to agree the sale - in effect it means they have to be notified of a sale so the owner can't cash in a do a runner without the mortgage company knowing.

Don't know anything about perpetual rents.

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