Selling Property With Arrears / Overdue Bills

When you own a home, you might fall into arrears by not being able to pay bills like council tax or mortgage instalments, and this could complicate your plans for selling the property.

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Your top questions when selling a property with overdue bills / arrears

✅ What does it mean to sell a house or flat with arrears or overdue bills?

If you are the owner of a freehold or leasehold flat, house or other type of residential property, you have arrears if you have fallen behind in meeting your monthly or yearly mandatory payment for various charges, including council tax or utilities. The remaining debt that you owe for these arrears needs to be a factor as you plan a budget for the sale of your home.

✅ What are some of the typical unpaid bills that homeowners might have?

There are several charges that could apply to your property for which it can unfortunately be relatively easy to miss one or several payments. These fees can include service charges and ground rent at leasehold flats and other properties, council tax which local authorities require leasehold and freeholder homeowners to pay, energy and other utility bills, and more.

✅ Does having overdue payments affect my legal right to sell my property?

Generally, the fact that you have arrears for a certain charge will not prevent you from selling your home in any way. But an important note applies to mortgage arrears, because if you have missed many home loan repayments then the mortgage provider could move to repossess your house or flat and then sell it, using the proceeds to clear whatever debt you own them.

✅ Will my arrears stay with me or transfer to the next owner of my current home?

Regardless of the type of debt that you owe associated with your existing freehold or leasehold house or flat, whether that’s council tax arrears, unpaid service charges or ground rent, overdue utility bills and other debts, the legal obligation to pay off this debt will remain with you. Even if you sell the home, that duty stays with you and the creditor could sue you to recoup the money.

✅ How can I make my property with arrears appear more valuable to buyers?

There are several simple, fast and low-cost or no-cost steps you can pursue to make potential buyers view your property as more valuable. Inside the home, these actions include removing as much clutter as possible from rooms and getting them all as clean as feasible. Outside the property, consider mowing any green space, replacing missing roof tiles and similar tasks.

✅ How much are the fees that I’ll need to pay when selling a home with overdue bills?

If you sell your freehold or leasehold flat, house or other property using the services of an estate agent or auctioneer then you will need to pay them commission, which will be deducted right away from the sale proceeds, adding to your costs. But if you sell on your own or you sell to a true no-fee quick buyer such as LDN Properties, you will not have to pay any fees.

✅ What is the most rapid method for selling a property that has arrears?

Selling your property to LDN Properties or another quick home buyer is typically the fastest approach, as this should only take a few short weeks, and this includes paying you the proceeds and the exchange of contracts. The other methods of selling with an auctioneer, selling with an estate agent or selling without any assistance might all take several months.

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