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Sinking fund introduced just before sale

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Comments

  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
    Ninth Anniversary 1,000 Posts
    G_M wrote: »
    :rotfl::rotfl::rotfl:

    Just pay it. It's trivial.


    I'm in agreement.

    I was expecting the OP to start quoting much higher figures.

    OP £250 may sound a lot in one hit for you but if you were staying and £250 were added to your service charge/management costs annually then it would only bump them up by £20 per month.

    Certainly not a reason to stop you from selling or indeed something that should put any potential purchaser off
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  • cashbackproblems
    cashbackproblems Posts: 1,826 Forumite
    sinking funds are usually part of a service charge (but kept in a different fund) which is your LL responsibility. Seems like he is trying to palm this off on your due it not being called a service charge. In my leasehold property I pay a service charge and sinking fund each quarter, the sinking fund just means it wont be spent on maintance
  • InterestedParty2018
    InterestedParty2018 Posts: 134 Forumite
    edited 6 April 2018 at 4:12PM
    If the lease permits the Freeholder/landlord to collect a reserve/sinking fund, and the invoice/demand has been raised correctly, then it must be paid by the specified due date.

    If the landlord is aiming to collect £250 annually from you for the foreseeable future works, you may want to ask you conveyancing solicitor if this sum can be apportioned, as is done with service charges which are paid in advance. No guarantees, but worth an ask.

    Any buildings insurance premium paid for in advance *should* be apportioned within the completion statement so that you end up only paying for the period of your ownership, and the buyer/new owner pays for their period of ownership.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    need_an_answer wrote: »
    I'm in agreement.

    I was expecting the OP to start quoting much higher figures.
    I had in mind that the OP was being asked to pay £2,500+.
    There's also £202.87 towards the insurance which runs from 1st April 2018...
    It is standard practice for this to be apportioned. Your solicitor will do this. Divide the 202.87 by 365 days (£0.55). Then multiply by the numer of days betwen 1st April and the Completion date; you are responsible for this, and the balance is added to the total the buyer pays you.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
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  • cjmillsnun
    cjmillsnun Posts: 615 Forumite
    AnotherJoe Agreed.
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  • claz83
    claz83 Posts: 20 Forumite
    G_M wrote: »
    I had in mind that the OP was being asked to pay £2,500+.

    It is standard practice for this to be apportioned. Your solicitor will do this. Divide the 202.87 by 365 days (£0.55). Then multiply by the numer of days betwen 1st April and the Completion date; you are responsible for this, and the balance is added to the total the buyer pays you.

    Thanks so much both, my solicitor has confirmed this is exactly what will happen. And we'll be reimbursed some of the insurance :T
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