Q&As

In a collective enfranchisement of leasehold property, if there are arrears of service charge owed by non-participating leaseholders, does the nominee purchaser discharge these debts on completion and take assignment of the right to recover them?

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Published on LexisPSL on 01/09/2016

The following Property Q&A provides comprehensive and up to date legal information covering:

  • In a collective enfranchisement of leasehold property, if there are arrears of service charge owed by non-participating leaseholders, does the nominee purchaser discharge these debts on completion and take assignment of the right to recover them?

In a collective enfranchisement of leasehold property, if there are arrears of service charge owed by non-participating leaseholders, does the nominee purchaser discharge these debts on completion and take assignment of the right to recover them?

The Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) does not alter or address the position regarding arrears owed by tenants, whether participating or non-participating.

Therefore, the starting point regarding arrears of service charge is:

  1. (for old tenancies (ie tenancies granted before 1 January 1996)) the right to sue a tenant for pre-completion arrears automatically passes to the buyer with the transfer of the reversion. However, it is a chose in action which can be expressly

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