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  • Legal FAQs

    Major works over-payment on leasehold flat

    Hello Everyone

    i would like to get some legal information.  i have purchased leasehold property in august 2018.

    Apparently there was major works between 2014/2015 and the council has over estimated the bill.

    They are currently offering a refund to me as im the current lease holder.

    Somehow previous owner got informed about this and they take me to solicitors demanding the over payment.

    Can anyone enlighten me about what's my rights? As i read in some websites if it was less payment i had to top it up but it doesn't give any information about what should i do if it was over paid. thanks

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    Why are you trying to keep it of you did not pay it? You're asking about your legal rights but legal rights to what? Keep money that you are not entitled to?
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    I think it depends on the wording of the contract of sale, but in same situation I too received a refund legitimately.  often contracts include a retention for extra sc, but if vendor is not liable for future demands relating to his/ her estimates then by same token vendor cant claim refunds.

    nats should share your name!

    im not a solicitor.

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    I don`t know the legal answer but its an interesting question

    It may be an anomaly in law  where refunds go to the other party but you cop for any extra charges

    Not fair I guess but the law can be like that sometimes

    I`m guessing ( but dont know ) the freeholder may have a legal obligation to inform the previous leaseholder so they can pursue you for that refund . They naturally dont want to get involved though with that potential dispute they just want to pay back someone . They  will have an obligation to repay you as you are the legal owner now even though they be well aware that `morally` the previous leaseholder should have this refund .

    We need a legal bod on here to grapple with this one



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    Jonathan Clarke. http://www.buytoletmk.com

    Over here https://www.propertytribes.com/major-work...42247.html you were trying NOT to pay the balancing payment, but now that you find out it is a refund you want to find ways to KEEP it?

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    Wow I'd feel like a heel for keeping it, no matter what the contract says. I must remember when I sell to add in the contract  that any refunds from managing agents that I have paid for, not being used for the purpose that they were handed over, I get back. Lesson learnt here!

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    You went into the deal having agreed to pay any extra, you bought the property with the previous works completed, so you’ve got exactly what was agreed, the vendor is entitled to a refund, not to sure the council would refund to you anyway as it’d be returning to a third party. Just pass the vendors details to the council and let vendor and council sort it out.
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    I think the council will deal with whoever has been assigned the lease at the time of distribution of funds

    The previous leaseholder became the 3rd party on completion / assignment in my view


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    Jonathan Clarke. http://www.buytoletmk.com

    Ok, i can see the logic in that thank you. Then with nothing in the purchase contract to cover it i expect the purchaser is entitled to retain it, vendor should have been more diligent.
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    Whilst the case referred to in the attached does not involve the sale of a property I wonder if the original leaseholder has a case against the freeholder which in turn may influence who they return the money to.

    https://www.falcon-chambers.com/images/u...harges.pdf
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