Retention Not Held Back (Leasehold)

kitchendevil

Thanks eddddy,

The lease states:

The Lessee shall pay to the Manager the Lessee's Proportion of the Maintenance Expenses in manner following that is to say:

In advance on the First day of March and the First day of September in every year throughout the Term one half of the Lessee's Proportion of the amount estimated from time to time by the Manager or its managing agents as the Maintenance Expenses for the year the first payment to be apportioned (if necessary) from the date hereof

The management agent has written to me advising that the balance will be automatically transferred to me, and if it is not paid within a set time I will be subject to penalty charges.

So from what you are suggesting this is incorrect and I/my solicitor should challenge the agent on this.

The year end accounts overspend, which is a separate issue, will be demanded of me, as the current owner, and I accept that the seller has no legal obligation to pay this (if not covered by a retention agreement). On this part will focus my efforts on understanding if an agreement existed between the solicitors and act accordingly.

mrschaucer

During conveyancing it is usual that the seller pays the management company to provide an official "seller's pack" to the buyer's solicitor - the buyer's solicitor will demand this as it has lots of relevant info about the management charges, sinking fund etc. One of the questions it covers is whether the seller is up to date with the service charge. This is one of the issues that determines the amount of the retention to be held.
Did your solicitor get a seller's pack from the managing company, and what did it say re whether the seller was "up to date" on the service charge? If the seller was in arrears it should have been brought to your solicitor's attention BEFORE exchange, not "after completion" as you say in your OP.
Just something else to check with your solicitor.