When selling an apartment, you will have to provide the buyer with one or more management packs. Or, as they are more commonly known, an LPE1 form. You may have to provide two packs, one from the management company and one from the ground rent collector.
When a buyer has a general enquiry about the apartment they are purchasing, such as what the service charge is or if any major work is planned on the apartment block, the management packs provide the answer. The packs should be completed by either the managing agents or the ground rent collector. However, it is the seller’s responsibility to ensure that the packs are correct and provided to the buyer once completed. As a seller, if you think there is a problem with the packs or find that some information is missing, you can check this with either the landlord, the management company, the managing agent or the residents’ or tenants’ association. This group of people / companies will have all the answers when it comes to any enquires about the apartment.
A management pack should include:
- General information about the landlord, their managing agents, the rent collector, etc.
- An up to date service charge statement
- Copies of the service charge accounts for the last three years
- The latest service charge budget
- The Memorandum and Articles of Association of the management company. These are required for a company formed in the UK. The Memorandum is the document which sets up the company and the Articles of Association set out how the company is run, governed and owned
- Copy of the insurance policy (if the management company take out buildings insurance for the whole block)
- Information on any major work that is planned or currently being undertaken
- Information on any reserve funds which may be held
- A copy of the health and safety and fire risk assessments for the communal areas of the block (this is not always provided)
- Details of any consents for alterations or improvements to the property or main structure
- A copy of the asbestos survey for the building
- Clarification on whether any service charge surplus or deficit may be due after the end of the current financial year. The buyer’s solicitor may request your solicitor to retain some of your sale proceeds until the year end accounts have been finalised. This may take 6 to 12 months and could be between £50 and £500.
When providing management packs, the managing agents and rent collector will usually charge a fee to provide them. This could range from £50 to £500 per pack and be charged to the seller of the apartment. In some circumstances, you may also have to pay a fee for the landlord or their agents to provide consent to the sale of the flat.
When it comes to selling an apartment, there are other documents and forms that you will need to provide alongside the management packs. You can find out more about these in our previous blog: “What Documents Do I Need When Selling An Apartment?”
For more information on management packs and what should be included, please contact our Conveyancing team on 0161 475 7676.