Leasehold property insurance question

Heylou32

Hi! I don’t know if this is the right forum to post this in but I’m hoping someone can help me.

I own a leasehold flat that is empty and I am in the process of selling. The ground rent and service charges plus buildings insurance through the freeholder are due.

I have asked for a revised bill so that I can spread the payments over a year, so monthly payments. Can my management company make me pay the year up front?

Thank you!

ThePants999

Yes, but assuming the payment is in advance, your conveyancer when you sell will generally arrange for the buyer to effectively pay you back for the portion of the year they'll own the property instead of you.

G_M

Heylou32 wrote: »

......The ground rent and service charges plus buildings insurance through the freeholder are due.

I have asked for a revised bill so that I can spread the payments over a year, so monthly payments. Can my management company make me pay the year up front?

Assuming that is what the lease specifies, then yes.


But as explained, this happens all the time. The amount the buyer of the lease pays will be adjusted (upwards) to cover the cost of the advance payment the seller has made.


(equally, if the seller owes money to the freeholder, then this amount would be deducted from the purchase price).