When you sell your property the buyer and the buyers lender, via the solicitors, will require evidence of the following:-

• Evidence of current service charges paid and the monthly/annual charge. The solicitors will apportion the annual charge between the seller and buyer. The annual charge is usually calculated on anticipated expenditure, and the solicitor will agree a retention to ensure the outgoing seller pays for any additional service charges due after the end of year accounts are produced. The retention is held on account by the solicitor and may be used if the new buyer receives a demand for additional charges incurred prior to ownership. Information is provided about monies held for service charges for future maintenance
• Anticipated future works also known as major works are important for a buyer as they will need to understand what maintenance costs they are going to be liable for. This could include a Planned Preventative Maintenance report
• The last three years of accounts pertaining to the management company show how the service charge has performed.
• It is important that the building is insured. A lender will require evidence and a copy of the policy schedule and wording should be provided
• Any leaseholder disputes are listed along with any current action being taken in relation to enfranchisement (someone buying the freehold), extension of the lease, right to manage or right to enfranchise company
• Costs the buyer will have to pay the freeholder after completion.

This information is used to prove that both your Ground Rent and Service Charge have been paid