Vendor's solicitor not provided accounts in 5 weeks for flat purchase

F37A

Hi 

Is this cause for concern? should i pull out?

I hate the fact you as a buyer are dragged through incurring costs and spending many months and still don't have key information about property. 

Thanks

Jonboy_1984

On our sale last year we sent over the copy we had within a couple of days of it being requested, but the buyers solicitor wanted the copy in the LPE1 management pack from the management agent for their process (or possibly the buyers mortgage companies requirements).

The MA took something like 9 or 12 weeks to complete the pack...and there was nothing we could do to speed them up!

F37A

Jonboy_1984 said:

On our sale last year we sent over the copy we had within a couple of days of it being requested, but the buyers solicitor wanted the copy in the LPE1 management pack from the management agent for their process (or possibly the buyers mortgage companies requirements).

The MA took something like 9 or 12 weeks to complete the pack...and there was nothing we could do to speed them up!

That sounds awful that took them 3 months. I will ask the vendor direct in this case for his copy. Pretty important i'd say the accounts. Don't want to be making huge costs with survey only to find accounts issues.

eddddy

F37A said:

That sounds awful that took them 3 months. I will ask the vendor direct in this case for his copy. Pretty important i'd say the accounts. Don't want to be making huge costs with survey only to find accounts issues.

You should also ask the vendor to chase their management company - explaining that their management company's slowness is delaying the transaction.

If the vendor supplies accounts to you, you can review and analyse them.

But your solicitor will probably want to wait for the accounts that come from the management company via the seller's solicitor (because your solicitor probably won't trust the documents that your vendor provides).

And in due course, maybe double check that the accounts the vendor has given you match the accounts that your solicitor receives.

F37A

eddddy said:

F37A said:

That sounds awful that took them 3 months. I will ask the vendor direct in this case for his copy. Pretty important i'd say the accounts. Don't want to be making huge costs with survey only to find accounts issues.

You should also ask the vendor to chase their management company - explaining that their management company's slowness is delaying the transaction.

If the vendor supplies accounts to you, you can review and analyse them.

But your solicitor will probably want to wait for the accounts that come from the management company via the seller's solicitor (because your solicitor probably won't trust the documents that your vendor provides).

And in due course, maybe double check that the accounts the vendor has given you match the accounts that your solicitor receives.

Thanks i will try these options.

They are saying the delay caused by a new MA being put in place. I guess the previous one must have been no good. 

Question will be whether i want to wait 2-3 month just to get accounts or trust the old accounts from vendor decide to proceed with survey on that basis.

eddddy

F37A said: 

Question will be whether i want to wait 2-3 month just to get accounts or trust the old accounts from vendor decide to proceed with survey on that basis.

I guess only you can judge whether you trust any accounts you receive from the vendor. I guess the risks you have to consider include:

• The vendor is a bit daft/disorganised - and accidentally sends you the wrong info and/or incomplete incomplete info
• The vendor is a bit dishonest - and purposely sends you the wrong info and/or incomplete incomplete info

Is your solicitor is waiting specifically for the accounts - or for the full management pack (typically an LPE1 form)?

Have you seen an LPE1 form and the type of questions it asks? Here's a sample: https://www.lease-advice.org/files/2022/01/LPE1-form.pdf


Edit to add...

I guess your key concerns include...

• Are the service charges more than you expected?
• Are expensive works planned?
• Is there a healthy reserve fund?

• Would your mortgage lender consider the service charges to onerous? (i.e. so high that they affect the salability of the property)

F37A

eddddy said:

F37A said: 

Question will be whether i want to wait 2-3 month just to get accounts or trust the old accounts from vendor decide to proceed with survey on that basis.

I guess only you can judge whether you trust any accounts you receive from the vendor. I guess the risks you have to consider include:

• The vendor is a bit daft/disorganised - and accidentally sends you the wrong info and/or incomplete incomplete info
• The vendor is a bit dishonest - and purposely sends you the wrong info and/or incomplete incomplete info

Is your solicitor is waiting specifically for the accounts - or for the full management pack (typically an LPE1 form)?

Have you seen an LPE1 form and the type of questions it asks? Here's a sample: https://www.lease-advice.org/files/2022/01/LPE1-form.pdf


Edit to add...

I guess your key concerns include...

• Are the service charges more than you expected?
• Are expensive works planned?
• Is there a healthy reserve fund?

• Would your mortgage lender consider the service charges to onerous? (i.e. so high that they affect the salability of the property)

thanks so much for this

the solicitor is waiting for full management pack including LPE1. 

the lender did have some concern over the quoted service charge initially as they were 2.2k p.a quoted. But then granted lending on my improved pay.

I wonder if vendor can share e-mails of service charges paid recently

eddddy

F37A said:

I wonder if vendor can share e-mails of service charges paid recently

I'm not sure what you mean.

• Typically, estimated service charge bills are sent out once or twice a year (depending on what the lease specifies).

• Usually, they are payable immediately - but some freeholders allow them to be paid in monthly installments.

• At the end of the year, a final account is usually sent - which tells you if the estimated charge you paid has turned out to be too low or too high.

Occasionally, an additional service charge bill might be sent out in between - for example, if a major unexpected repair is required (a section 20 consultation might be required).

So you can ask for copies of things like

• The estimated service charge bill(s) for the current year (i.e. just an estimate)
• The year-end service charge accounts for previous years (i.e. the final real numbers)
• Details of any 'additional' service charge bills paid this year (or previous years)
• Details of any 'additional ' service charges that are anticipated

user1977

The vendor is not going to have all the information you want, so there's not much point chasing them directly only to get a partial answer. Is there anything in particular you're wanting confirmed at this stage? Normally you'll already have a general idea of what the costs are, this is just to flush out any (unlikely) surprises. Not really worthwhile you stalling the rest of your due diligence.

penners324

Your solicitor will only accept the accounts in the management pack. So getting direct from the vendor is pointless.

Don't forget your solicitor is also acting for your mortgage company.

F37A

user1977 said:

The vendor is not going to have all the information you want, so there's not much point chasing them directly only to get a partial answer. Is there anything in particular you're wanting confirmed at this stage? Normally you'll already have a general idea of what the costs are, this is just to flush out any (unlikely) surprises. Not really worthwhile you stalling the rest of your due diligence.

I'd like to know that the s/c is as what was quoted for the last few years and, whether sinking fund is adequate or whether large works bill coming. I can't confirm these points without evidence via accounts i would have thought which means i'm less likely to proceed with other due diligence eg survey which very costly