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    • LindsW
    • By LindsW 17th Sep 19, 9:44 PM
    • 16Posts
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    LindsW
    Fees when selling a leasehold flat
    • #1
    • 17th Sep 19, 9:44 PM
    Fees when selling a leasehold flat 17th Sep 19 at 9:44 PM
    Hi All

    I am currently selling my purpose built flat which is approx 3 years old.
    It has a management company who I pay a service charge to and a landlord who I pay ground rent to every year, which I believe is a fairly standard set up.
    My question is, has anyone had their landlord who owns the land/takes the ground rent, charge them a set percentage of their sale price as a fee on completiom just because you have sold the property? Is this a standard thing?

    Thanks
Page 1
    • davidmcn
    • By davidmcn 17th Sep 19, 10:01 PM
    • 13,143 Posts
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    davidmcn
    • #2
    • 17th Sep 19, 10:01 PM
    • #2
    • 17th Sep 19, 10:01 PM
    Not standard. Does your lease say they can charge it?
    • eddddy
    • By eddddy 17th Sep 19, 11:12 PM
    • 8,550 Posts
    • 8,843 Thanks
    eddddy
    • #3
    • 17th Sep 19, 11:12 PM
    • #3
    • 17th Sep 19, 11:12 PM
    My question is, has anyone had their landlord who owns the land/takes the ground rent, charge them a set percentage of their sale price as a fee on completiom just because you have sold the property? Is this a standard thing?
    Originally posted by LindsW
    It's sometimes called a "deferred service charge" or "deferred management fee" - and the Law Commission calls them "Event Fees".

    They often apply to retirement properties.

    Some people say they're a good idea for retired people with limited incomes. They pay lower service charges whilst living in the property, but make up for it by paying a big chunk of 'deferred service charge' when they sell.

    But sometimes they can be a rip-off.

    Here's a bit more info:

    Law Commission Final Report on Event Fees

    ...
    Leases of retirement flats and bungalows often include a fee triggered by certain events, such as when the owner sells or sub-lets their property. These fees are typically set at around 1% of the property sale price but may be as high as 30%.

    Link: https://www.lease-advice.org/news-item/law-commission-final-report-event-fees/
    • LindsW
    • By LindsW 17th Sep 19, 11:29 PM
    • 16 Posts
    • 0 Thanks
    LindsW
    • #4
    • 17th Sep 19, 11:29 PM
    • #4
    • 17th Sep 19, 11:29 PM
    Thanks both.
    There is nothing stated in the lease about it, I had seen some general information online about leasehold property selling and wondered whether it is standard practice for all leasehold sales and something I'd need to consider when working out my costs.
    Is it generally just for retirement properties then?
    • eddddy
    • By eddddy 18th Sep 19, 6:31 AM
    • 8,550 Posts
    • 8,843 Thanks
    eddddy
    • #5
    • 18th Sep 19, 6:31 AM
    • #5
    • 18th Sep 19, 6:31 AM
    There is nothing stated in the lease about it...
    Originally posted by LindsW
    If there's nothing in the lease (or any other contract that you've agreed to) then you won't have to pay anything.



    I had seen some general information online about leasehold property selling and wondered whether it is standard practice for all leasehold sales and something I'd need to consider when working out my costs.
    Originally posted by LindsW
    Could it be you've read about "Leasehold Information Packs"? You have to pay the freeholder to prepare one of those - but they tend to cost a couple of hundred pounds. They're not a percentage of the selling price.
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