Leaseholders

Selling or subletting your home

Selling

When you sell your leasehold property you will be required to provide information to the purchaser.

This will be part of the seller’s information pack. This is also called an LPE1 form. This pack is normally requested by your solicitor.

We will provide the information for your solicitor, however there is a charge for this service. The information will usually include details on the expiry date of the lease, service charges, insurance, major works and any disputes.

We will provide details of how much the service charge is and how much has been paid to date and any outstanding amounts that need to be paid before completion of the purchase. We do not get involved in how you agree with your buyer to settle the outstanding charges. Please note there may be money owed for the previous year that has not yet been invoiced.

If major works have taken place at your property around the time you are selling or are due to take place shortly after the sale it is likely that the final cost of the works will not be known when your sale completes. In this case the solicitor acting for your purchaser will probably negotiate with your solicitors for a ‘retention of funds’.

This means that when the sale completes and the money is transferred the final sum will be less the amount being retained to cover the anticipated cost of the works. The amount will have been agreed by both you and your purchaser and will be based on the most accurate estimate we are able to provide. When the works are completed and the service charge accounts have been finalised the solicitor will release the funds to meet the cost.

The solicitor acting on behalf of the buyer should notify us and provide a copy of the assignment once the sale is completed. It’s at this stage that our records are updated and your account will be closed with us.