When selling leasehold property, you should be aware of additional costs imposed by your managing agent or freeholder. Here are some important factors to be mindful of:
This document will contain all provisions that you should abide by and will confirm what additional fees could be charged. Examples of fees include:
- Contingency Fees – fees charged by a landlord which will compel the leaseholder on sale to pay, usually a percentage, of the sale price to the management company to increase the sinking fund. As such it is normal for this sum to be paid from the sale proceeds.
- Fees for covenant consent – it is common with a leasehold property to require consent from the managing agent to alter or amend the property. Most managing agents charge a fee to provide the consent. Such consent should be sought before you actually carry out the alterations as, without it, you are potentially breaching a covenant of the lease. If you did not seek consent before the alterations were carried out, you will probably require this when you come to sell. As such, fees will apply for consent retrospectively.
Costs for information when selling a leasehold property:
With leasehold property, you are likely required to provide a management pack from the managing agent. Also, the freeholder may be required to provide a pack of similar nature containing information about the freehold – such as ground rent status. These fees can vary dramatically, from as little as £50.00 to £600.00 and more. It is advisable to ask your rent collector or managing agent for the costs at an early stage. It is also important to note that these packs take time to be produced and should be purchased at an early stage.
If you’d like more information about selling your leasehold property or have any questions regarding Residential Property, contact our team on 0161 475 7676.