Here are ten reasons for London’s empty properties…
The primary cause of homes being left empty in London is due to poorly managed, misunderstood and complicated probate situations.
Probate is the process of which a deceased person’s estate is liquidated to cover unpaid debts and taxes, with any remaining funds awarded to next of kin, if no will is present.
Around 250 former long term empty and derelict homes revealed that 90 per cent of these cases were “held up” within probate.
Youspotproperty.com rewards members of the public for spotting and reporting empty homes in London and the M25, these are then put back into use. The company is currently processing 3,000 empty properties.
Empty homes expert, Nick Kalms, co-founder of YouSpotProperty.com, said, “Having brought back in excess of 200 empty properties over the last few years, we’ve managed to analyse and ascertain the underlying problems revolving around empty property. The main reasons are without any doubt related directly to probate; these houses are therefore left to deteriorate until, finally, probate is granted enabling the house to be sold.”
The ten reasons for London’s empty homes:
1. Lack of awareness and understanding about probate.
2. Intestacy (where no will has been left) therefore no final direction from the deceased.
3. Missing family members (missing beneficiaries).
4. Issues surrounding an emotional attachment to the property and inertia around its disposal (such as a childhood home).
5. Finding probate too litigious and complicated in terms of providing paperwork needed.
6. General reticence around agreeing to sell the property.
7. Family disputes (estranged family members).
8. No knowledge of Inheritance tax and possible future CGT (capital gains tax) liabilities.
9. Financial restrictions in legal representation.
10. Vulnerable executors and beneficiaries.