S
steveburns
New Member
Hi everyone
I bought a freehold buy to let property at an auction. It is an old terraced house in an area where prices are rising due to nearby developments. My solicitor found out it has a rentcharge attached to it (a very old occurrence that is very confusing). Basically there is a annual charge of around £30 dating back to the late 1800's but the owners of the rentcharge could not be found and the amount owed is also unknown. The previous owner never paid it or were contacted by the owner of the rentcharge but they only had the property for a short time. The solicitor advised me to get defective title and rent charge insurance which I have done. However I am still a bit concerned having researched the topic, as you can't always rely on the insurance to actually pay out and the consequences of the owner of the rentcharge taking your property due to missed payments. Has anyone else been in this situation and what have they done? If I try and contact the owner of the rentcharge to organise the payments or pay the ownership my insurance will be void. Additionally the charges date back to so long ago and if they have been unpaid I may owe a huge amount of money. It is a shame as the house is otherwise a nice investment.
I bought a freehold buy to let property at an auction. It is an old terraced house in an area where prices are rising due to nearby developments. My solicitor found out it has a rentcharge attached to it (a very old occurrence that is very confusing). Basically there is a annual charge of around £30 dating back to the late 1800's but the owners of the rentcharge could not be found and the amount owed is also unknown. The previous owner never paid it or were contacted by the owner of the rentcharge but they only had the property for a short time. The solicitor advised me to get defective title and rent charge insurance which I have done. However I am still a bit concerned having researched the topic, as you can't always rely on the insurance to actually pay out and the consequences of the owner of the rentcharge taking your property due to missed payments. Has anyone else been in this situation and what have they done? If I try and contact the owner of the rentcharge to organise the payments or pay the ownership my insurance will be void. Additionally the charges date back to so long ago and if they have been unpaid I may owe a huge amount of money. It is a shame as the house is otherwise a nice investment.