As executor am I liable ???

[pgantley]

Hi,

I have been a joint executor of my late Grandmothers estate for the past three years.

 

The problem I now have is that the flat, which is a 70% shared ownership (over 55's apartments) has been on the market for the last three years.

 

 

Its had a few views and a few offers.

 

 

The last offer was rejected by the management company, Equity Housing (www.equityhousing.co.uk),

who say they means test the candidates before they are allowed to let them live at the property.

 

 

They where rejected because they had too much money ?!? OK, fair enough I suppose.

 

Whats happened now, is that there is no more money left to pay the monthly service charge to Equity, Council tax or other monthly outgoings.

 

 

The solicitor has now decided they will stop representing us/the flat because there is no more money to pay for anything.

 

My questions if any one can help is;

 

Can I hand back the flat to the Bank ?

 

Should I demand that Equity be more involved ?

 

Am I as executor liable for these bills and if they don't get paid will that go against me ??

 

 

I'm all ready with a Debt managment company and only just getting straight.

 

 

Thanks for any advice.

[citizenB]

Will try and find someone who can help you with this.

[pgantley]

Hi & thanks Citizen B, much appreciated.

[citizenB]

Just a few more questions.

 

Why are new owners "means tested" ?

 

Do you have the original contract and have you looked at what happens when someone dies and the property needs to be sold ? I am finding it hard to understand how the Management company have so much control over the sale of the property.

[caro]

My mother had a 70% share in her bungalow for over 55s with a HA and they insisted on selling. It was in the leasehold agreement so we had no choice. It was so they could ensure it was sold to someone who met the criteria to live there, but there was no means-testing.

[pgantley]

Just a few more questions.

 

Why are new owners "means tested" ?

 

Do you have the original contract and have you looked at what happens when someone dies and the property needs to be sold ? I am finding it hard to understand how the Management company have so much control over the sale of the property.

 

Hi, I questioned Equity about this,

Equity explained they have a duty of care.

they have to make sure any new tenant fit the bill, so to speak.

Iv not seen the contract and agree with you, Iv no idea why they have so much control over who gets to buy the flat.

I could call them and ask on Tuesday. And ask for a copy of the contract.

 

Regards

[caro]

I can understand ensuring they have enough money but not too much.

[colin11]

Couldn't you rent it out for a while to cover expenses ?

[pgantley]

Hi Colin 11th,

apparently, according to equity, it's not allowed and is in the lease.

I'm going to get more details about this. I'm sure once Equity realise there not going to get any more money from the flat,

they will be eager to get it sold.

[pgantley]

Sorry, I meant Colin11. Typo.

[pgantley]

Caro,

it turns out, Equity advised the last buyers to go and buy a bungalow.

 

[citizenB]

Caro,

it turns out, Equity advised the last buyers to go and buy a bungalow.

 

 

 

That is ridiculous ?

[steampowered]

You shouldn't be liable for the estate's debts. The only time an executor becomes liable is if they have mismanaged the estate in some way.

 

I think you have to inform equity and the bank about the situation. You might find that the bank decides to make the service charge payments to equity and adds that to the mortgage, in order to avoid equity forfeiting the lease. If the mortgage goes into default the bank might be able to sell the property but it doesn't sound like it would be easy for them to sell it.

[caro]

I don't think the bank could sell it as equity retain 30% of the property.

[pgantley]

Hi all,

bit of an update.

Except for the solicitor handing back all the contact info for the various agencies who should be paid each month, nothing has changed.

 

Im just going to contact each of the companies who are expecting money and explain the situation. I suppose Ill see what responses I get.

 

Steampowered,

Ill try your suggestions regarding informing Equity and the Bank. I think, so long as Im up front with them, if anything nasty crops up I can always say I let them know.

 

Thanks all.