August 11, 2022

Just how much can a freeholder charge on a flat sale?

Sussex

CROWDSCampaign against retirement leasehold exploitation applies to the wisdom of crowds on this one, being clueless on the issue.

What is a reasonable fee for a freeholder to charge in processing a flat sale?

In this housing association there may be procedures to confirm suitability of a purchaser for this type of housing. £250 all in would seem about the maximum to us.

Any thoughts?

A question from Coral:

When a leasehold flat is sold, the buyer has a solicitor, the seller has a solicitor, and the housing association, or freeholder, (in this case Sussex Housing & Care) has a solicitor.

Are there restrictions on what the latter can charge for rubber-stamping the change of ownership?

All the paperwork, legal searches, and registrations etc. are done by the solicitors of the buyer and seller.

The suitability of the buyer is confirmed by the local manager of the association.

In the last sale, the solicitor for the association charged fees equal to half those of the seller’s solicitor (The 2% of sale price is paid by seller’s solicitor directly to the association).

 

Comments

  1. With the exception of the notice fee ( Hi, we’re the new owners notice) and any certificate of compliance, then other consents are controlled by Sch 11 of CLRA 2002, Managing agents/Landlord’s enquiries costs can be high and have not been tested under this though the consensus is that they would not be covered, and most certainly would not be if made by the purchaser.