Leasehold Sale - Managment Packs

Luke_Bank

Evening All,

My first post on here. I have searched prior to posting but couldn’t find an answer to my specific query.

I’m currently in the process of selling a leasehold flat. It’s my first sale of a property and I was blissfully unaware of all the hidden costs.

I’ve just paid £300 to my Management Company (who collect the service charge) for them to compete an LPE1, sometimes referred to as Leasehold Information Pack or a Management Pack.

On the LPE1 it asks questions about the Ground Rent. The management company have simply put “Collected by Landlord” which is the case.

The Ground Rent is collected by a company called Home Ground (I’ve read the horror stories ). My worry now is that I may have to pay Home Ground for some sort of pack in order to answer the questions about the Ground Rent.

Does anybody have any experience of this? Do you need packs from both the management company and the Ground Rent company?

My buyers are cash buyers who are desperate to be in by Christmas. My fear is that having to request and wait for another pack may delay things and they’ll lose interest. Not to mention the worry of another fee.

Thank you all in advance.

Luke

Ranek

Hello Luke,

We're in the middle of the same process (leasehold flat), we had to pay for a "management pack" from both the management company and the "freeholder."

The freeholder employ another company to collect the ground rent so it was them that we had to pay for the pack (it sounds like a similar situation to yours).

I kept ringing them and chasing and they managed to get it done in a week.

Good luck.

Luke_Bank

Hello,

Thank you for your reply.

Yes, it sounds like we’re in the same position. I pay my service charge to one company and my Ground Rent to another. Frustrating to hear you had to pay for two separate Managment Packs. The pack from my management company (service charge) cost me £300!

adrianmartin_19

In the exact same situation, except we paid £395.00 for the LPE1 and now requested £220.00 for a management pack, did you also have to pay for both? Hesitant to pay at the minute?!

Tiglet2

Unfortunately, if you have a landlord/freeholder and a separate management company, one who deals with the maintenance of the building and communal areas and the other who deals with ground rent, you will need a pack from both of them. However, if the freeholder only deals with ground rent, you will probably find that the cost is a lot less. It's best to let your solicitor write to both companies to find out exactly what is required and the cost involved and then you pay them to order the packs. Your buyer's solicitor will not proceed without both sets of information.

SmashedAvacado

If it is just about ground rent, presumably you have kept copies of the ground rent invoices and you also have copies of your bank transfers / statements showing the ground rent going to the landlord's account. I am not sure why anything more than that would be needed.

davidmcn

SmashedAvacado wrote: »

If it is just about ground rent, presumably you have kept copies of the ground rent invoices and you also have copies of your bank transfers / statements showing the ground rent going to the landlord's account. I am not sure why anything more than that would be needed.

The original query last year was about ground rent, the thread has been resurrected (along with another one) by adrianmartin_19's query.

AlexMac

This is why I avoid leasehold flats where both freeholder and Managing Agent regard the proerty as a cash cow to milk. I tend not to buy anything but "Shared Freeholds" where the leaseholders own the block collectively. But not everyone has that luxury option

I act (now and in a previous flat ) as the Director/ Treasurer of a small "Shared Freehold" Company, where we manage everything ourselves, and I'm always please to respond "nil" to Solicitors' enquiries about how much it will cost for me to spend half an hour completing the LPE forms.

We take the view that as the cost will simply go on our own or our future neighbour's tab when we come to sell, it's petty and pointless to levy a charge. That and the absence of Agent fees, and because we control expenditurs, contracting and supervision of maintenance etc mean we keep Service Cahrges low too.

But regrettably you're where you are!