Picture the scene: a potentially highly desirable Edwardian three-bed terraced house, on a leafy commuter-friendly road littered with German and Swedish SUVs. Outward appearances suggested the owner was neither an enthusiastic gardener, nor a committed DIY-er. The local Council had done its best to keep the garden under control in the face of complaints from the neighbours. In truth, this property had been a thorn in the Private Sector Housing team’s side as the house had been empty for 10+ years and the owner was nowhere to be found. The Empty Homes Officer approached us for an informal discussion - could we help? Yes, we definitely could!
The cast
Ethan had died 20+ years before without leaving a valid will. The property devolved on his intestacy to his surviving spouse (Ilsa), who saw her days out there and, when she died eight or so years later - also without leaving a valid will - their only child (let’s call him Benji) inherited it. Title to the property had never been registered and Benji, discovering that the front door keys worked just fine without a grant of probate or registered title, lived in the property for a while, having to work around piles of his parents’ hoarded possessions. He ultimately abandoned the property and the Council subsequently changed the locks and Sitexed the windows. Some years later the Empty Home Officer approached us for help.
So far, so not-very-unusual
We see cases like this all the time and our MO is to locate the relevant people (in this case Benji) who can apply for the grant of probate so that the property can change hands and be brought back into use. As a rule, they welcome our offer of help navigating the intricacies of intestacy, probate, registration of title and so on. To summarise: for the property to be brought back into use, it would be necessary to do all the background work so that someone could apply for grants of probate to (i) Ethan’s estate and (ii) Ilsa’s estate. Thereafter, title could be registered in Benji’s name – if he wanted it…
Objective: trace Benji
So we needed to locate Benji, explain the position and offer to help him untie the knots in what had become, for him, a potentially tricky situation with the possibility of outstanding Inheritance Tax, some Council Tax arrears and other indebtedness. We located Benji living hundreds of miles away from the property. He acknowledged that something needed to be done but politely and unambiguously rejected any prospect of his dealing with the property or participating in any way in its disposal or the administration of his parents’ estates. He was also strongly opposed to inheriting the property or receiving any proceeds of its sale.
Say hello to our friend
I’ve heard EHOs refer to properties like this as being “stuck in probate hell” as they shake their heads in despair and you can see why. On one hand, Benji’s resolve to do nothing was firm – on the other the Council wanted their Council Tax arrears and weren’t going to take no for an answer and no doubt HMRC would have a point of view. And let’s not forget the neighbours, openly fed up. Call Benji’s refusal to engage with the process an immovable object; our determination to assist the Council to BEHBIU*, an irresistible force. When they meet, as Johnny Mercer (not that one) put it, Something’s Gotta Give. Benji doesn’t want to be involved? He has capacity to make decisions? We have tools at our disposal which cut through problems like this – because probate is involved, things become easier with many more options to hand than otherwise: In this case, the answer was contained in a friend of ours: s.116 Senior Courts Act 1981.
S.116 Senior Courts Act 1981
You can read s.116 SCA behind the hyperlink above. Broadly, it enables the Court to appoint anyone as administrator to any estate, if there’s a good reason to do so, passing over whoever would ordinarily be in the driving seat. To be fair, it’s usually a last resort and the costs of the application are met by the estate to which the order relates. There can be many drivers for an application and they include the Council’s wish to BEHBIU* and its need to be settled up with where it’s owed money. Generally speaking our experience is that when people realise that things are going to happen anyway but in the long run it’s going to cost them, they tend to reconsider their position and willingly engage with the process. But Benji just did not want to know.
The outcome
We applied for and were granted an order under s.116 and, with the authority to act, we could bypass Benji, and administer Ethan’s and Ilsa’s estates, settling all the liabilities to HMRC, the Council and other creditors, ultimately selling the property. Needless to say we kept Benji in the loop throughout although he maintained his position, and we paid the proceeds of sale into Court, notifying him accordingly. The neighbours were happy to have a young family acquire and fix up the property and join the residents’ association, the Council were super-pleased to have an apparently impossible case dealt with and we were, as always, delighted to help.
How about you?
We deal with seemingly very tricky empty homes cases all the time. Whatever the facts behind your problem empties, it’s almost certain we’ll have dealt with something similar and can offer a solution. You’re welcome to buzz me for an informal chat on 07850 739812 or email me via nickbeetham@fraserandfraser.co.uk.
*you know: Bring Empty Homes Back Into Use
