Question 1

Dealing with a flat repossession

Accepted Answer

A sign of these credit crunch times, one of our flats has been repossessed. Bailiffs arrived one day at the flat, gained entry by force, changed the locks and left a notice on the door. What happens now with regard to the owner’s share certificate? He has not left a forwarding address. The flat has been up for sale for year now, and the estate agent has today sent a letter asking for a key to the communal front door, to allow access for his client – the mortgage company. Your advice on what to do would be most welcome. The FPRA replies: The mortgage company have effectively taken possession of the property from the leaseholder. As the flat has been re-possessed the mortgage company and/or its solicitors will now arrange for the sale of the flat on behalf of the leaseholder and will discharge any monies that are owned to the Lender and the remainder, if any, will be used to settle the leaseholders remaining debts i.e. other charges that have been placed against the property etc. I would advise that in the first instance the freehold company make contact with the mortgage company’s solicitors and advise them of any arrears of grounds rents and service charges in respect of the property. You will need to ask them for an undertaking to discharge any arrears on completion of the sale from the mortgage company to the purchaser. The purchaser’s solicitors will then contact the freehold company to deal with pre-contract enquiries and the issuing of the share certificate etc. in much the same way as with a usual conveyancing transaction.

Question 2

Dealing with a flat repossession

Accepted Answer

A sign of these credit crunch times, one of our flats has been repossessed. Bailiffs arrived one day at the flat, gained entry by force, changed the locks and left a notice on the door. What happens now with regard to the owner’s share certificate? He has not left a forwarding address. The flat has been up for sale for year now, and the estate agent has today sent a letter asking for a key to the communal front door, to allow access for his client – the mortgage company. Your advice on what to do would be most welcome. The FPRA replies: The mortgage company have effectively taken possession of the property from the leaseholder. As the flat has been re-possessed the mortgage company and/or its solicitors will now arrange for the sale of the flat on behalf of the leaseholder and will discharge any monies that are owned to the Lender and the remainder, if any, will be used to settle the leaseholders remaining debts i.e. other charges that have been placed against the property etc. I would advise that in the first instance the freehold company make contact with the mortgage company’s solicitors and advise them of any arrears of grounds rents and service charges in respect of the property. You will need to ask them for an undertaking to discharge any arrears on completion of the sale from the mortgage company to the purchaser. The purchaser’s solicitors will then contact the freehold company to deal with pre-contract enquiries and the issuing of the share certificate etc. in much the same way as with a usual conveyancing transaction.

Dealing with a flat repossession

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