When you sell your property the buyer and the buyer’s 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 3 years of accounts of the management company shows how company has been trading. It is important for a buyer to know that the freehold and communal areas are properly managed with sufficient cash reserves to cover future costs
  • 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.

The solicitor will also require evidence of current ground rent paid and any ground rent due and the monthly/annual charge. This information is used to prove your ground rent has been paid and to apportion any amounts to you or that you owe on completion. If the ground rent is demanded by us and collected on behalf of the freeholder via management company we will provide the information. If we do not then a separate request will have to be made directly to the Freeholder or their managing agent.