Free Advice Column - 18/03/2009
18 Mar 2009
Holed up with the cash
Q. My brother-in-law died two months after lending another brother £200,000 to buy a house. He didn't leave a will, and after the funeral the brother who'd been lent the money took everything else – insurance policies, bank statements, the death certificate, even his brother's Porsche – and has since refused to communicate with my husband or the rest of the family. That was two years ago, and my father-in-law has died in the meantime without being able to sort this out.
A. Where someone dies without leaving a will and they have no spouse or children, their parents will be expected to apply for a Grant of Letters of Administration from the Probate Registry in order to wind up the deceased's estate. Did your father-in-law make an application before his death? Without authority the brother-in-law with the money will probably not be able to access the deceased's bank accounts or insurance. If your mother-in-law won't make a probate application, your husband could possibly do so on her behalf. Once someone has this authority they could potentially sue the brother for the missing money and the other items he took. It's possible the brother will claim the £200,000 was a gift, not a loan, and all in all I think you will need a solicitor's help with this.
Seeing double
Q. I'm being approached by two different companies demanding payment of ground rent. How can I make sure that I'm paying the right one? One of them has threatened legal action. I've written to both explaining that I'm declining payment until I get clarification. Is that ok?
A. It will do for the time being. This can happen where out-of-town landlords own the legal title to properties in a street of the same name but in a different postal district. In view of your letter, one of them will presumably provide you with a copy of the Land Registry entry proving their ownership eventually. If you wish to sell the property and the ground rent remains unpaid you will have to sort this out.
Home and dry
Q. The cellar of our house is ankle deep in water. The water company has acknowledged it is responsible but nothing has been done about it in six months, despite several ‘phone calls. The damp is affecting the woodwork and the concrete floor feels spongy to walk on.
A. You may be able to claim on your buildings insurance, assuming you have some. The insurance firm's loss adjusters will be anxious to stop further damage and may have more success with the water board. They will certainly be eager to get the water board to pay for the damage. In any case, as long as the water board has accepted responsibility you should write to them pointing out the damage the leak is causing every day it is left, and the likely cost of repairs for which they would be liable.
Unofficial car park
Q. I have bought a house, but the previous owners have left an old car in the driveway. They said they'd move it, but three months later it's still there. It's not taxed and I'm fairly sure it's not roadworthy, but I would like it removed. Have you any suggestions?
A. Since you know who owns the vehicle you could threaten to move the car from your property on to the road, where the council will dispose of it since it has no licence. The council may also remove the car from your property, but it's possible they'll charge you to take it away. You could also discuss the problem with the police, since it can be an offence to abandon a vehicle on someone else's property.
Q. My brother-in-law died two months after lending another brother £200,000 to buy a house. He didn't leave a will, and after the funeral the brother who'd been lent the money took everything else – insurance policies, bank statements, the death certificate, even his brother's Porsche – and has since refused to communicate with my husband or the rest of the family. That was two years ago, and my father-in-law has died in the meantime without being able to sort this out.
A. Where someone dies without leaving a will and they have no spouse or children, their parents will be expected to apply for a Grant of Letters of Administration from the Probate Registry in order to wind up the deceased's estate. Did your father-in-law make an application before his death? Without authority the brother-in-law with the money will probably not be able to access the deceased's bank accounts or insurance. If your mother-in-law won't make a probate application, your husband could possibly do so on her behalf. Once someone has this authority they could potentially sue the brother for the missing money and the other items he took. It's possible the brother will claim the £200,000 was a gift, not a loan, and all in all I think you will need a solicitor's help with this.
Split and save
Q. We are both in our early 70's and my husband is not in good health. We have one child, a married daughter. Is there any way we could avoid the value of our property and savings being eroded should one of us die and the other require long-term care? Our home is currently worth about £170,000 and I have about £40,000 in savings.
A. The first thing to do is to make wills and become tenants in common of your property so that you each own separate halves. That way you can each leave your half of the property to your daughter on your deaths, whilst giving the survivor the right to remain in the house during their lifetime. This at least means that half the value of the property (the half belonging to the first to die) will not be available for care home fees. You should also consider giving your daughter some money during your lifetime, although this can be difficult since you don't know how much you're going to need. It's a conundrum that you should discuss with your solicitor.
Seeing double
Q. I'm being approached by two different companies demanding payment of ground rent. How can I make sure that I'm paying the right one? One of them has threatened legal action. I've written to both explaining that I'm declining payment until I get clarification. Is that ok?
A. It will do for the time being. This can happen where out-of-town landlords own the legal title to properties in a street of the same name but in a different postal district. In view of your letter, one of them will presumably provide you with a copy of the Land Registry entry proving their ownership eventually. If you wish to sell the property and the ground rent remains unpaid you will have to sort this out.
Home and dry
Q. The cellar of our house is ankle deep in water. The water company has acknowledged it is responsible but nothing has been done about it in six months, despite several ‘phone calls. The damp is affecting the woodwork and the concrete floor feels spongy to walk on.
A. You may be able to claim on your buildings insurance, assuming you have some. The insurance firm's loss adjusters will be anxious to stop further damage and may have more success with the water board. They will certainly be eager to get the water board to pay for the damage. In any case, as long as the water board has accepted responsibility you should write to them pointing out the damage the leak is causing every day it is left, and the likely cost of repairs for which they would be liable.
Unofficial car park
Q. I have bought a house, but the previous owners have left an old car in the driveway. They said they'd move it, but three months later it's still there. It's not taxed and I'm fairly sure it's not roadworthy, but I would like it removed. Have you any suggestions?
A. Since you know who owns the vehicle you could threaten to move the car from your property on to the road, where the council will dispose of it since it has no licence. The council may also remove the car from your property, but it's possible they'll charge you to take it away. You could also discuss the problem with the police, since it can be an offence to abandon a vehicle on someone else's property.
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