Conveyancing Solicitors in London detail management information required when buying flats

On the purchase of leasehold properties such as flats, Conveyancing Solicitors in London want to see information about the management of the building in which the property is situated. In 2010 London Property Lawyer Jane Lim acted for Mr and Mrs R on their acquisition of a flat at Warren Way, Edgware, London HA8. The flat was situated in a large modern block, and Jane needed to check that the development was being properly managed.

The first thing Jane did on receiving the draft contract and copy lease from ELC of Westgate House, Westgate, London W5 1YY, the Conveyancing Solicitors in London acting for the sellers, was to ask them to obtain replies to a questionnaire from the freeholders' agents. 

Many blocks of flats are managed by professional management companies. They arrange annual buildings insurance renewal, make sure that any day-to-day maintenance is carried out, and organise major repairs when necessary.

Leases contain provisions for the owner to contribute to the costs incurred in carrying out these obligations (which will also include fees charged by the management company.) These charges can be quite substantial and buyers will need to know how much they will have to budget for.

Management information required

• service charge accounts for the previous three years
• the estimate for expenses for the current accounting year
• details of any major works or exceptional expenditure anticipated
• a copy of the insurance policy and the current renewal schedule
• the names and addresses of the freeholders, their agents, and any person or organisation on whom a notice of the sale of the flat must be served
• the fees charged for registering notices of transfers and mortgages
• whether there were any arrears of the ground rent or other payments due under the lease

The sellers were required to pay a fee for these services to the managing agents, who then sent the London Conveyancers a comprehensive pack containing all the information which Jane required. Having examined this she found that the building together with other blocks on the same development were being properly managed. She was able to let her client have details of the annual amounts which they would have to pay.

How Conveyancing Solicitors in London handle a Leasehold Mortgage

The clients required a mortgage, and Jane also had to satisfy herself that the lease and management arrangements complied with lenders' requirements. These are set out in the handbook issued by the Council of Mortgage Lenders, and Property Lawyers have to be able to certify to lenders that all mortgage conditions have been met before any mortgage advance can be issued. Any problems will therefore have to be referred to lenders before contracts can be exchanged.

As soon as she was satisfied with the information which she had been given, Jane arranged the exchange of contracts and completion of the transfer with the sellers' Conveyancing Solicitors in London. The purchasers appreciated Jane's efforts in providing them with details of the charges and their other obligations under the lease.

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