Anyone sold a Leasehold Flat before? Who pays for management co info?

airhostess

If anyone else has sold a leasehold flat before I'd be interested to find out who pays what.

I am selling my flat which is leasehold, and my solicitor has told me that the buyer's solicitors are requesting a number of documents from the management company for the block of flats, such as a copy of the last three years audited accounts for the management company, copy of this year's budget, proof that I have paid the service charge since I have been the owner etc. The management company want to charge £80 to supply this, my solicitor thinks I must pay. Surely if the other side require it, they need to pay, just as they pay for their searches & valuation etc? My solicitors didn't estimate this as a disbursement on their quotation, yet they believe I should pay.

If it's definitely me that must pay, why can't I just drop into the office of the management company and ask to make copies of all the relevent documents needed and pay for the individual copies? All leaseholders such as myself hold shares in the management company, so surely we should be allowed access to company accounts etc?

Any help gratefully received!

AH

Doozergirl

Be grateful it's only £80! They can be a lot higher than that.

I know I've paid those fees but I honestly can't remember if it's when I've been a purchaser or a vendor

CB1979_2

the vendor pays, you don't have to supply the info, but if you don't they may pull out.

same as you would/should be expected to supply any guarantees/warranties for any works, etc etc.

you pay for it and if the sale falls through least you have the info ready for your next purchaser.

airhostess

Thanks so much for those replies!

the vendor pays, you don't have to supply the info, but if you don't they may pull out.

same as you would/should be expected to supply any guarantees/warranties for any works, etc etc.

you pay for it and if the sale falls through least you have the info ready for your next purchaser.

That's just what I thought. I understand about having all warranties/guarantees - I supplied those for my new windows, but I got the guarantee when I bought the windows - it's not like I had to fork out for it separately. I will try my best to get all the info they need from the management company for free by going there myself - but if not, they can always pay to get the info they need. I don't really see how having the last 3 years accounts is going to reassure them of anything - I already supplied them with the current years and surely they can get a good idea from that how the building iss run & what the accounts are like?

Doozergirl

airhostess wrote: »

I don't really see how having the last 3 years accounts is going to reassure them of anything - I already supplied them with the current years and surely they can get a good idea from that how the building iss run & what the accounts are like?

Standard request. It's what every solicitor asks for.

airhostess

Then I must have all the info already from when I bought the flat... or my old solicitor will!! So I can just pass it on to the buyers!

Doozergirl

airhostess wrote: »

Then I must have all the info already from when I bought the flat... or my old solicitor will!! So I can just pass it on to the buyers!

Certainly what I've done in the past You'll have copies of the standard enquiries as well, perhaps.

hierrodaknuckles

hiya AH,

I am in the same situation - i have also had to pay around £80 for the managing agents to release info to the buyer's solicitor. I think it covers things like any works due in the near future and likely costs, recent past works, plus the request for past accounts is to see if there have been any issues, what the outgoings have been etc etc. It is a standard thing unfortunately, but some agents charge loads more than this.

Alos be aware that if you are leasehold, you may inccur a charge down the line for the license to assign, which is something to do with the freeholder changing the lease over to the new buyer. I have just had to pay an extra 600 quid for this to be done, on top of the solicitors fees - that came as a bit of a shock :eek:

We're due to exchange in the next week and I'm a complete nervous wreck! :rotfl:


Good luck with your sale.

Richard_Webster

Alos be aware that if you are leasehold, you may inccur a charge down the line for the license to assign, which is something to do with the freeholder changing the lease over to the new buyer. I have just had to pay an extra 600 quid for this to be done, on top of the solicitors fees - that came as a bit of a shock :eek:

A licence to assign is required by some leases - all that is really required is that the Landlord consents in writing to the assignment to the buyer and this could be by letter, but some landlords and their solicitors make a big production of having a Licence to Assign Deed produced. I have yet to have explained to me in any sensible fashion what real extra protection the deed gives the landlord. To me it is simply a way of solicitors manufacturing unnecessary costs which in my view brings discredit on the profession.

If it's definitely me that must pay, why can't I just drop into the office of the management company and ask to make copies of all the relevent documents needed and pay for the individual copies? All leaseholders such as myself hold shares in the management company, so surely we should be allowed access to company accounts etc?

Two points here:

1. As others have said it is standard and if your solicitor knew you were selling a flat he should have told there would be a fee of this nature. £80 is on the low side of average these days. I've known it be anything from nothing (when it is a residents' management company where the people in the flats themselves run it) to £250 + vat.

2. If the freehold is owned by a residents' management company then OP would have a say in deciding which professional managing agent should actually do the work for the company. If the members feel they are being ripped off they can get someone else to do the work or do it themselves. However, as mentioned above, the charge is fairly typical and the problem really is that it is often the case that there is nobody in the block prepared to do the work themselves so a professional managing agent is appointed out of convenience, and one of the downsides is that you get charges like this.

hierrodaknuckles

Richard_Webster wrote: »

A licence to assign is required by some leases - all that is really required is that the Landlord consents in writing to the assignment to the buyer and this could be by letter, but some landlords and their solicitors make a big production of having a Licence to Assign Deed produced. I have yet to have explained to me in any sensible fashion what real extra protection the deed gives the landlord. To me it is simply a way of solicitors manufacturing unnecessary costs which in my view brings discredit on the profession.

yes - our solicitor was gobsmacked at the charges from our freeholder and his solicitor and challenged it for us, but the response was just kind of 'you want to sell, you pay it'. I gave up arguing just to save time so we can get this thing wrapped up.

buxtonrabbitgreen

i sold my late mother's leasehold flat and had to get a solicitor to deal with the managment company. They were real rip off merchants . Never did any work and charged £600 per year. i had to pay £300 to them to get the management info. It took the solictio nagging for weeks before they would part with the relevant info even though I had to pay.