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Stuart J
Stuart J, Property Solicitor
Category: Property Law
Satisfied Customers: 22922
Experience:  Senior Partner at Berkson Wallace
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I am an executor of my step mothers will. We have completed

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I am an executor of my step mothers will. We have completed probate and there are debts in the estate. The only asset is the lease of an over 50's flat which has been on the market for 3 years and is currently on the market with an estate agent and online auction. We have not been able to pay the maintenance charge as there is no money in the estate and hence we have a court order for non payment. The landlord has now issued a section 146 notice which will mean the landlord will recover the lease for the flat on 5th December. The estate will then be insolvent. Are you able to help?
JA: Where are you? It matters because laws vary by location.
Customer: Warwickshire
JA: What steps have you taken so far?
Customer: none
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!

I have been asked to look at this for you. I apologise if I am delayed getting back to you over the weekend because I am only online and off-line sporadically at weekends. Nonetheless, I am online at some time every day.

 

Why have you not sold the property at auction or simply kept dropping the price until someone has purchased it?

 

What is the property worth approximately?

 

Is there a mortgage outstanding and if so, how much?

 

When was the service charge last paid and how much is outstanding?

Customer: replied 6 days ago.
There is no mortgage, the service charge has not been paid since my step mother died since there is no cash in the estate the only asset is the lease on the flat. The property was valued at £95,000 at probate has been reduced steadily to £40,000 now. Probably not worth more than £25000 now. We have used three estate agents each wiTH different specialities and we have reduced the price steadily.It is online at present and has been for around a month without a bid. There are 4 other properties for sale in the same block, one a two bedroom (our is one bed) has been online for over 2 months without a bid.
Currently the debts are around £25,000. It looks to me as if we are presented with a the situation that the estate will be insolvent afteR the 5th December and we need to consider what to do it that situation.

If the flat is worth GBP25,000 and there are debts of GBP25,000, then the estate is indeed insolvent.

If that is the case, and that is no money left after the payment of funeral expenses, then the debts die with your stepmother.

The only time this would be worth “saving” would be the price that could be achieved in respect of the sale of the property was more than the GBP25,000 debts.

 

If you really can’t be bothered and want to walk away from this, then you are at liberty to do so and let the landlord foreclose on the lease and let the debt die away.

 

You’re concerned about personal liability, then provided you have not taken any money from the estate, neither you nor any of the other beneficiaries or trustees or executors have any liability.

 

There is no need to worry about that.

 

If I have answered your question for you, at the top of the page, you should see a rating facility. Can you please rate my reply 3 stars or more because that really helps me? Please note you are not rating whether it’s favourable, because sometimes you may not get the answer you want, but basically my knowledge and way of dealing.

The thread does not close and I am happy to answer any questions you may have arising from this.

Kind regards

 

Customer: replied 5 days ago.
Thank you for this it is helpful. Do I need to take any action in regard to the insolvency it terms of writing to the debtors or any legal steps necessary?

If you don’t contact the creditors (debtors are people which owe your mother money) they will just continue to write so you need to write to them and tell them exactly what the situation is and the you anticipate that not only will there be no money to pay creditors, indeed, that is going to be a shortfall that you will contact them if there is any surplus to be distributed.

If you could help me, in the way that I have helped you, I would be obliged if you could please use the rating service because that gives payment for my time and expertise it today.

If anything else crops up, we can still exchange notes.

Kind regards.

Stuart J, Property Solicitor
Category: Property Law
Satisfied Customers: 22922
Experience: Senior Partner at Berkson Wallace
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