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Letter of Undertaking

AlifieBow

Registered User
Oct 21, 2021
11
0
Has anyone successfully got one of these? We cant raise money by using the council deferral agreement as my brother would not pay rent or move out of the property so they have offered us this but I can't get a solicitor to do it for us!

The conveyancing solicitor that is selling the house (we have a buyer and my brother says he is moving in with a friend) won't issue it until the sale has been exchanged which defeats the object really as then it will only be a few days until the sale completes and we can clear the mounting arrears with the Care Home.

Not asking for help with sorting this out but just wondered if anyone else has had a successful Letter of Undertaking done?
 

Lemondrizzle

Registered User
Aug 26, 2018
207
0
A solicitor will not give a letter of undertaking for something they can't guarantee. What if the sale falls through? What if you then go to a different solicitor when you find another buyer. Your first solicitor will then have given an undertaking to discharge finances when he has no control over the money but could still be held to pay the sums over. It is a serious misconduct for a solicitor to give an undertaking where they may not be able to discharge it.
 

Bunpoots

Volunteer Host
Apr 1, 2016
6,067
0
Nottinghamshire
Personally I think the council are being unreasonable as, if your brother is moving out when the house is sold what difference is does it make?

Perhaps they’d be happier if they knew the sale was imminent?
 

Forgetmeknot

Registered User
Jun 9, 2021
12
0
Could you just get your brother to write and sign a letter of undertaking - it is him that would be giving the undertaking, not the solicitor. The Council may accept that
 

Lemondrizzle

Registered User
Aug 26, 2018
207
0
Unfortunately a letter from the brother won't have the same legal standing as one from a solicitor which has a significant meaning and status in law.
 

Shedrech

Volunteer Moderator
Dec 15, 2012
11,306
0
Yorkshire
Can your brother move out earlier... I'm guessing that it's his occupation of the house that is a complicating factor for the LA
 

Forgetmeknot

Registered User
Jun 9, 2021
12
0
Unfortunately a letter from the brother won't have the same legal standing as one from a solicitor which has a significant meaning and status in law.
But the solicitors cannot give an undertaking on behalf of your brother. They will only give an undertaking to do something within their power. They can draft it for him to sign but it will be his undertaking, not theirs
 

nitram

Registered User
Apr 6, 2011
24,042
0
North Manchester
OP, who has not read any replies,

AlifieBow

New member
Joined Oct 21, 2021
Last seen Monday at 6:19 PM

talks about deferral and currently selling the house.
This seems strange because deferral is giving a loan with the property as security, loan is usually paid back on the death of the person in care.

If the intention is to sell the house at the outset the LA grant a 12 week disregard.
Maybe this12 weeks has expired and the LA are asking for some security to continue funding the care.
 

AlifieBow

Registered User
Oct 21, 2021
11
0
Thank you for the replies. I have given up on the Letter of Undertaking and just hoping the sale actually goes through by the end of January and then we can just settle up privately with the Care Home. It's still a mystery to me how anyone gets a Letter of Undertaking as the solicitors I have spoken to all agree with the above comments but the Council says it is an easy process of the conveyancing solicitor just giving a legal undertaking to pay them before they release the funds to the seller. Will be pleased to have it all behind me!.
 

AlifieBow

Registered User
Oct 21, 2021
11
0
OP, who has not read any replies,

AlifieBow

New member
Joined Oct 21, 2021
Last seen Monday at 6:19 PM


talks about deferral and currently selling the house.
This seems strange because deferral is giving a loan with the property as security, loan is usually paid back on the death of the person in care.

If the intention is to sell the house at the outset the LA grant a 12 week disregard.
Maybe this12 weeks has expired and the LA are asking for some security to continue funding the care.
We requested the deferral as we did not want to sell but the LA would not give it as the house was occupied and my brother would not sign a tenancy agreement or move out so the only option left was to sell the house (he then agreed to move out which if he had done so initially would have meant we would not have had to sell the house ...) they have then offered the Letter of Undertaking to pay the home whilst the sale goes through but no solicitor would do one for me. They should be paying the 12 week disregard money but even that has not come through yet so the people losing out at the moment are the care home - and my sanity as I hate owing anyone money!
 

Bod

Registered User
Aug 30, 2013
1,455
0
Thank you for the replies. I have given up on the Letter of Undertaking and just hoping the sale actually goes through by the end of January and then we can just settle up privately with the Care Home. It's still a mystery to me how anyone gets a Letter of Undertaking as the solicitors I have spoken to all agree with the above comments but the Council says it is an easy process of the conveyancing solicitor just giving a legal undertaking to pay them before they release the funds to the seller. Will be pleased to have it all behind me!.
That makes more sense, what is required, is that the conveyancing solicitor Undertakes to pay the Council before passing on any extra money to you.
Exactly the same as paying off any mortgage when the house is sold.
The Undertaking is only enacted if the solicitor actually has the money from the purchaser.

Bod
 

Lemondrizzle

Registered User
Aug 26, 2018
207
0
Thank you for the replies. I have given up on the Letter of Undertaking and just hoping the sale actually goes through by the end of January and then we can just settle up privately with the Care Home. It's still a mystery to me how anyone gets a Letter of Undertaking as the solicitors I have spoken to all agree with the above comments but the Council says it is an easy process of the conveyancing solicitor just giving a legal undertaking to pay them before they release the funds to the seller. Will be pleased to have it all behind me!.
Unfortunately local authority staff do not always understand the nuances of legal processes. If I had a pound for every time a client said "but the social worker said all you have to do is ......." I could have retired years ago.

Once exchange of contracts has taken place and where there is a gap before completion the conveyancer could give a Letter of Undertaking to pay the council first, having explained to the client that the undertaking is irrevocable. Until that moment the conveyancer themselves has no guarantee they will ever have the money.