Management Information Pack: Difference between revisions
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Also known as a Leasehold Information Pack, this must be supplied by a seller for leasehold properties, where the property does not include a share of freehold. The Pack contains information about the freehold management, ground rent and service charges, and forms a part of the formal leasehold information that a seller needs to provide to the buyer. It must be obtained either by the seller or by the seller’s solicitor from the freeholder or managing agent. | |||
The pack should contain information on the following: | |||
1. Ground Rent | 1. Ground Rent | ||
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2. Service Charges | 2. Service Charges | ||
Evidence of current service charges paid and any ground rent due and the monthly/annual charge. As above, this will be used in an apportionment calculation. | Evidence of current service charges paid and any ground rent due and the monthly/annual charge. As above, this will be used in an apportionment calculation. This should include last 3 years published Service Charge Accounts plus information about any reserves held for service charges for future planned maintenance. It should also show the budget for current year and details of the anticipated payments on account. | ||
3. Major works | 3. Major works | ||
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5. Buildings Insurance | 5. Buildings Insurance | ||
It is the Freeholder's obligation to ensure that adequate buildings insurance cover is in place. A copy of the policy should be provided in the pack. | It is the Freeholder's obligation to ensure that adequate buildings insurance cover is in place including building insurance for the property's common parts. A copy of the policy should be provided in the pack and should include the buildings insurance Policy & Schedule. | ||
6. Notice fees, deed of covenant fees, and other freeholder fees | 6. Notice fees, deed of covenant fees, and other freeholder fees | ||
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7. Disputes & enfranchisement | 7. Disputes & enfranchisement | ||
Any leaseholder disputes are listed along with any current action being taken in relation to enfranchisement (someone buying the freehold), extension of the lease (Read more about Extending your lease), right to manage or right to enfranchise company. | Any leaseholder disputes are listed along with any current action being taken in relation to enfranchisement (someone buying the freehold), extension of the lease (Read more about Extending your lease), right to manage or right to enfranchise company. | ||
Revision as of 18:25, 10 February 2017
Also known as a Leasehold Information Pack, this must be supplied by a seller for leasehold properties, where the property does not include a share of freehold. The Pack contains information about the freehold management, ground rent and service charges, and forms a part of the formal leasehold information that a seller needs to provide to the buyer. It must be obtained either by the seller or by the seller’s solicitor from the freeholder or managing agent.
The pack should contain information on the following:
1. Ground Rent Evidence of current ground rent paid and any ground rent due and the monthly/annual charge. This information is used to prove your ground rent has been paid and to apportion any amounts to you or that you owe on completion.
2. Service Charges
Evidence of current service charges paid and any ground rent due and the monthly/annual charge. As above, this will be used in an apportionment calculation. This should include last 3 years published Service Charge Accounts plus information about any reserves held for service charges for future planned maintenance. It should also show the budget for current year and details of the anticipated payments on account.
3. Major works Planned future works are important for any buyer as they'll need to understand what repair work costs they are going to be liable for
4. Last 3 years of annual accounts for Management Company The last 3 years of accounts of the management company shows how profitably the company has been trading. It is important for a buyer to know that the freehold is going concern and is managing the freehold and communal areas properly with sufficient cash reserves to cover any disasters such as roof repairs.
5. Buildings Insurance It is the Freeholder's obligation to ensure that adequate buildings insurance cover is in place including building insurance for the property's common parts. A copy of the policy should be provided in the pack and should include the buildings insurance Policy & Schedule.
6. Notice fees, deed of covenant fees, and other freeholder fees The pack includes costs the buyer will have to pay the freeholder after completion.
7. Disputes & enfranchisement Any leaseholder disputes are listed along with any current action being taken in relation to enfranchisement (someone buying the freehold), extension of the lease (Read more about Extending your lease), right to manage or right to enfranchise company.