apportionments

EmMarie08

Hi everyone 

Hope someone is able to help. We're buying 45% of a house (before people say anything sadly this is our only option when we're being priced out of our area) 

We've just seen this in an email from our solicitor..

"The Solicitors acting for the developer will also collect in an advance payment of your Ground Rent, Service Charges and/or Estate Charges on completion (known as apportionments). We would recommend that you allow for approximately 12 months in advance"

This would be approx £6k which I see as completely unreasonable. No one has mentioned it. It hasn't been in any paperwork (which me and my husband both read the fine print). We've googled and looked on the housing company website still none the wiser. 

Anyone know what this means?
Thank you

oldbikebloke

it means what it says, there are additional charges which are payable in advance.

as it mentions developers, presumably this is a new build and therefore yes, 12 months would be due, as there is no split ("apportionment") between a seller and a buyer as would be the case when the property is not new and part of the 12 month charge had already been paid by the seller

mrschaucer

Do you mean you weren't expecting the charges or do you mean you weren't expecting to pay them just yet?

princeofpounds

6k for one year sounds like a LOT, unless I'm missing something.

ChloeManoey

That sounds odd, I haven't heard of anyone buying shared ownership having to pay 12 months of rent/service charge in advance. Why on earth would they need that? You pay monthly .. 

DayDreamerandGeneralWaster

How do those charges come to the equivalent of £500 a month? Does that include rent on the part you don't own?

eddddy

 You quote from an email from your solicitor....

EmMarie08 said:

"The Solicitors acting for the developer will also collect in an advance payment of your Ground Rent, Service Charges and/or Estate Charges on completion (known as apportionments). We would recommend that you allow for approximately 12 months in advance"

Then you say...

EmMarie08 said:

This would be approx £6k which I see as completely unreasonable. 

Is your solicitor who is saying it's approximately £6k - or have you got that figure from somewhere else?

Are you confusing 2 different types of rent?

• Ground Rent, and
• The rent you pay for the 55% of the property that you don't own. 

Ground Rent would be payable yearly (but it's probably between about £100 and £300 per year). The rent you pay on the rest of the property will probably be paid monthly - not in a lump sum, in advance.

ChloeManoey

eddddy said:

 You quote from an email from your solicitor....

EmMarie08 said:

"The Solicitors acting for the developer will also collect in an advance payment of your Ground Rent, Service Charges and/or Estate Charges on completion (known as apportionments). We would recommend that you allow for approximately 12 months in advance"

Then you say...

EmMarie08 said:

This would be approx £6k which I see as completely unreasonable. 

Is your solicitor who is saying it's approximately £6k - or have you got that figure from somewhere else?

Are you confusing 2 different types of rent?

• Ground Rent, and
• The rent you pay for the 55% of the property that you don't own. 

Ground Rent would be payable yearly (but it's probably between about £100 and £300 per year). The rent you pay on the rest of the property will probably be paid monthly - not in a lump sum, in advance.

That makes a LOT more sense!