Share of freehold flat purchase - Information required for License to Assign

am1707

Hi,

I'm in the process of purchasing a share of the freehold, purpose built, flat. I've been requested by my [FONT=&quot]solicitors[/FONT] that "The seller’s solicitors require an employers reference in writing and a bank statement in your name so that they can contact the Freeholder-Landlord regarding a License to Assign"

This seems irrelevant and intrusive in the context of purchasing a share of the freehold property. Anyone else had to supply this information?

When I asked my solicitor WHY I had to provide this information, they were unable to provide a reason. Similarly, when the solicitor asked why to the management agent, the reply was "That is the requirement of the company as per the LPE1 replies." So is this just a ploy to extract an additional £275 in fees without doing any work? Or am I missing something here ?!?

Tom99

Have you been inform of the exact legal set up? Most 'share if freehold' flats involve a normal lease of the flat where all normal lease rules apply, including an expiry date ground rent etc, then share(s) in a company which owns the freehold interest.

am1707

Yes, the share of freehold is owned by a management company which I will eventually receive a share in. I should add further, this is a cash purchase which avoids any further complications or hassle associated with a mortgage

G_M

If you've paid the fee for the seller/Manco to complete the LPE1, then they should complete the LPE1.

No reason for the information they've requested to be provided. Have they asked for a further £275?

am1707

The LPE1 has been paid for by the seller. The License to Assign fee has been charged to the seller (but not paid yet).

So what do you think would happen if I refused to supply this information? Other than delaying my property purchase. This information seems unnecessary and the management agent has not provided a logical reason why it is required.

Moreover, it's in my interest if the entire fee itself could be challenged and scrapped. There are still other costs I'm negotiating over with the seller, so any money saved here is likely to make him more agreeable to my other requests.

am1707

My solicitor postulated it was a check my financial stability. But as charges go, £108 a month is a relatively low expense which most people should be able to afford. Is it common for managing agents to request an employers reference and bank statement to check whether you can pay the service charge?