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

October 11, 2013 By

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).

 

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Filed Under: News, Q&A

Professional services

Managing agents

Big managing agents, which manage flats, are big because they have got business from developers or large-scale freehold owing companies.

Such as Proxima or Fairhold, which are administered through Estates and Management and are ultimately controlled by a trust in the British Virgin Islands.

Doubtless they are very obliging.

Not a single one is big through consumer choice.

Managing agents accredited to the Leasehold Knowledge Partnership, on the other hand, want business from leaseholders. Many are former leaseholders. Many have spoken at our Parliamentary meetings urging politicians to clean up the sector.

All have signed undertakings of good practice and have provided extensive references … from leaseholders.

They can also hand-hold leaseholders through right to manage at minimal cost.

Contact Sebastian O’Kelly at LKP for further details: sok@leaseholdknowledge.com, 07808 328 230

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Diamond

Epsom, Surrey

 

jonesassociates

Macclesfield

 

 

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Comments

  1. AM says
    October 29, 2013 at 3:51 pm

    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.