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AVS
06-12-2010, 09:33 AM
Hi all, could do with some advice on this. Appologies if this is a 'numpty' question but I could do with getting it clear. Looking to purchse a property at auction which has a charge set against it by a local council for 11K. This was for making safe a dangerous gable end. The owner has been made bankrupt and the sale is being overseen by accountancy firm. On the legal pack it mentions that it is not known if any VAT element is due on the property (the owner is a bankrupt builder, this is one of his properties). Can any of these 'charges's be passed ontor to the new buyer? What if the house sale doesn't generate enougth income to clear the charges/possible VAT element.

Any idea of typical 'conveyencing' fees to deal with the sale (no mortgage required).

Thanks in advance...

jeffrey
06-12-2010, 12:25 PM
The cost mentioned is probably a Local Land Charge. It binds the property even if this changes hands.
So build into your costings the amount payable to the Council. Unless V accepts contractual obligation to pay it, you'll have to!

AVS
06-12-2010, 12:45 PM
Thanks Jeferey, what about the VAT side of things. Can they chase a unsettled bill througth new owners of the property. Seems a bit draconian. Thanks

jeffrey
06-12-2010, 12:54 PM
Thanks Jeferey
Who's that, then?


what about the VAT side of things. Can they chase a unsettled bill througth new owners of the property. Seems a bit draconian. Thanks
Yes (Local Land Charge); yes (VAT, if payable on the purchase price).

AVS
06-12-2010, 13:05 PM
Sorry, I didn't make myself clear. They may persue VAT on this property if due, at sale point. Can they chase other VAT owed for his business interests through this sale as well. ie I get landed with a , at yet, undisclosed sum at a futre date.

What about a 'conveyancer', can one be poached from here or is it a no/no

Thanks JEFFREY...

jeffrey
06-12-2010, 13:13 PM
Sorry, I didn't make myself clear. They may persue VAT on this property if due, at sale point. Can they chase other VAT owed for his business interests through this sale as well. ie I get landed with a , at yet, undisclosed sum at a futre date.

What about a 'conveyancer', can one be poached from here or is it a no/no
What you pay on completion is conclusive. No extra is due, unless the contract says so.
if you want me to assist professionally, please send e-mail.