Probate

[COMROG]

Hello

I am a director of the management company for a block of 12 flats.
In 2021, the joint owners of one flat, husband and wife, died consecutively in June and November.
My understanding is that there are 2 solicitors appointed by a combination of 4 siblings from theirs and previous marriages.
I realise this combination presents difficulties but fail to understand why (the excuse made by the solicitors) probate has not been finalised.
Additionally, it would appear that disagreement between the interested parties regarding the final distribution of the proceeds is taking time.

My sole interest concerns ensuring the income of the block to maintain the services as dictated by the lease.
That income is provided by quarterly service charge demands issued by the block's financial management, a separately employed company.
The block has received only one payment of the last 5 issued; come 1st July £1500 will be owed.
Meanwhile, the beneficiaries, etc, continue to use the property (south coast) at varying times for short breaks, etc.
The block's financial management company has been requested to advise the solicitors that interest of 10% (as stated in the lease for late payment) should be payable in addition to the outstanding service charges.

The response was negative.

I should be grateful for any advice including reference to the following;



1. Is interest applicable for late payment of service charges in probate cases;

If so;

2. Could/should an interim statement be issued to the solicitors outlining the current deficit plus accrued interest to date, or

3. Could/should interest only be included in a final statement prior to the transfer of title, etc.

TIA

[dslippy]

1 Yes
2 The debt is payable and due by the executors. Send your normal documentation out but addressed to the executor of the second to die.
3 Make it clear that registration of the new owner is dependent upon clearnce of any arrears whether of rent or service or administration charges.

It is not uncommon for probate to be delayed, but the point about an executor is that he has a power to make payments on behalf od the estate as they fall due, and before the grant. This does not apply to an administrator as simply.

You might also want to look to rights to forfeit the lease - check the wording in the lease. They will no doubt have a right to request relief, but will have to pay up to exercise it.

[COMROG]

dslippy

Thank you very much.

A few further queries if I may;

1. I do not know who are the executors; the service charge demands are sent to one of the solicitors; would that suffice or should they be addressed for the attention of the executor.

2. You say an executor has the power to make payments 'as they fall due'. The solicitor states the estate does not have sufficient funds although they managed one payment earlier this year; If there are little or no funds, are the executor(s) expected to make payment from their own funds?

3. Are you saying the correct procedure is not to include interest now but wait until the solicitor needs to finalise the distribution of the estate that will necessitate completion of the sale of the flat. I believe there are additional liquid funds so there may be an earlier part distribution prior to a sale. In other words, wait until the solicitor requests a statement of all outstanding debt to clear the arrears?

[Sam101]

Perhaps DSLIPPY can confirm, but I believe that a debt of this type can be registered against the property in the probate office in which case it would need to be removed by settlement before Probate could be granted.

[dslippy]

Perhaps DSLIPPY can confirm, but I believe that a debt of this type can be registered against the property in the probate office in which case it would need to be removed by settlement before Probate could be granted.

Sorry I have never heard of such a procedure. The point about the probate is that it is that document which gives access to the bank accounts and thus enables the executors to pay the bill.

[Sam101]

Apologies, I should have said the Land Registry office. not the Probate office. If a debt is registered against the property, it cannot be conveyed or dealt with without clearance of the registration. ?

[atticus]

Debts can "be registered against the property" if the creditor has (a) commenced court action and obtained judgement, and (b) applied for and obtained a charging order.

[COMROG]

Thanks for your responses.

At this point in time, I do not believe there will be an issue in receiving the outstanding debt.
So, I believe, in this case, the conversation in respect of 'registering a charge', etc, is premature.

I would still appreciate advice as to the 3 points made in my earlier post above please. i.e.

1. Correspondence to addressed to the solicitor, marked for the attention of the executors?

2. I understand that although the executors are liable for settlement of any outstanding debt incurred by the estate,
they do not have to make payment from their own funds, i.e. they are entitled to wait for probate, etc, to be finalised?

3. As above?

TIA

[dslippy]

(Service) The lease has provisions for service. Follow them. You write to the registered proprietor at the address shown on the Land register entry. That is likely to mean writing to the property. It may be sensible to make it clear to the solicitors that that is what you are doing.
(Payment) The executors are not expected to find the money from their own funds.
(Interest) Follow the lease