Are you buying a leasehold property? It’s the responsibility of the seller to provide your conveyancer with a management pack. The Pack, as it’s known, may contain evidence that influences your decision to buy so it’s vital that you see a copy before you complete the purchase.
What’s in the Pack?
Your management pack will include:
• The draft contract
• Title deeds
• Property information form
• Fixtures and fittings form
For a leasehold property it will also include the following information:
You should receive details about the service charges that are due on the property and the accounts for the previous years. Check for any sudden rises or unusual charges and ensure that any arrears will be settled on completion.
This is usually referred to in the lease but the actual amount collected by the landlord may differ. Ensure there are no arrears and that, if there are, they will be dealt with by the seller on completion.
Deed of Covenant
If any Deeds of Covenant are to be entered into, a draft must be included. As these deeds are basically a promise to the landlord that you’ll abide by all the provisions of the lease it’s important you read both documents carefully.
If any major works are to be carried out on the property, you’ll be expected to contribute towards the cost. In the case of major repairs like roofing, this can be expensive and may influence your purchasing decision. You’ll need to know when major works are scheduled to be carried out and what your contribution is likely to be.
Your pack should also include other relevant documentation including:
• Whether the leaseholders are buying the freehold of the property
• Whether any other leaseholders have broken covenant
• Whether you will become a member of the management committee
• Copies of Articles of Association of the management company
• Details of any applicable fees
• Contact details for the landlord/leaseholder
It’s critical that your conveyancing solicitor goes through the documents carefully so that they can raise any outstanding issues with you. The management pack can provide crucial information on whether a leasehold property is the right purchase for you so make sure your conveyancer gets a copy as quickly as possible during the conveyancing process.