Guide to selling your leasehold property

www.stockporthomes.org

2 Guide to selling your leasehold property

If you wish to sell your flat or maisonette you may find this ‘Guide to selling your leasehold property’ useful.

If after reading this guide you have anymore questions about selling your leasehold property, please contact yourLeasehold Officer on 0161 218 1364 or by writing to:

Stockport HomesCustomer Finance Team1 St. Peter’s SquareStockportSK1 1NZ

You may wish arrange an appointment with the Leasehold Officer.

No, but it would be helpful as Stockport Homes will be able to give you information for the preparation of a HomeInformation pack (HIP) and on any outstanding issues, such as non-payment of service charges or ground rent which you will need to address prior to selling.

Introduction

Do I need to advise Stockport

Homes that I intend to sell my

property?

Guide to selling your leasehold property 3

Yes it is likely that your Solicitor or the purchaser’s Solicitors will request information from you or Stockport Homes which may include the following:

• a balance of your service charge and ground rent account. Please note that under the terms of the lease service charges are due annually in advance and despite any agreement to pay monthly some solicitors will insist that the balance is paid in full prior to completion. You should discuss apportioning the years costs with your Solicitor; • service charge details for the last three years; • proof that the ground rent has been paid to date; • details of any work chargeable under Section 20 of the Commonhold and Leasehold Reform Act 2002 (major investment works such as roofing or communal doors) that is being done or is planned but which has not been invoiced yet;• details of any invoices under Section 20 of the Commonhold and Leasehold Reform Act 2002 that have not been paid;• details of any incidents where the lease has been broken;• copies of permission to make alterations; • the Freeholders details (Stockport Council);• cost of assigning the lease; • scheme / development details;• confirmation that the property is insured by the freeholder and copies of the insurance schedule;

Will Stockport Homes be

contacted during the sale?

4 Guide to selling your leasehold property

• details of any sinking fund (As at February 2009 there is no sinking fund in place); and• copies of any asbestos survey, Fensa and fire certificates.

Stockport Homes will aim to give this information to your solicitor within 10 working days of getting their letter. As collating this information is time consuming Stockport Homes will make an administration charge. You will normally be asked to send this fee to your solicitors.

All invoices issued must be cleared before the property is sold. The solicitors involved may insist on retentions being held for costs such as minor communal repairs and investment works which have been completed or are due to be completed which have not yet been invoiced.

In certain circumstances you may have to offer back the leasehold property to Stockport Council or pay back some of the discount you benefited from when you purchased the property.

Your professional advisor or solicitors will be able to advise you on this. Should you be required to pay back some or the entire discount your solicitors will contact StockportCouncil’s Legal Department for a figure.

Offering back your property or

paying back your right-to-buy

discount

Guide to selling your leasehold property 5

The lease

You can sell the property at any point during the lifetime of the lease. The person who buys it pays to take over the remainder of the lease. So if you purchased your home on a 250 year lease and sell if after 10 years the buyer will purchase the remaining 240 year lease.

After the property is sold, under the terms of the lease, the buyer’s solicitor is required to write to Stockport Council’s Legal Department to tell us about the change of ownership. This correspondence is called a notice of transfer or notice of assignment.

Stockport Council will request confirmation from Stockport Homes to confirm that there are no outstanding issues with the outgoing leaseholder before acknowledging the notices and sending a copy back to the buyer’s solicitor.

If all outstanding charges have been paid up to the date ofcompletion Stockport Homes will end the outgoingleaseholders account and create a new account in the name of the buyer for the service charge and ground rent.

How is my name removed from

the service charge / ground

rent accounts?

6 Guide to selling your leasehold property

Should I provide a forwarding

address?

Stockport Homes will confirm that your account has been closed and provide a revised invoice showing the charges from the beginning of the financial year to when you sold the property.

We will also forward you copies of any minor communal repairs that you were responsible for while you lived at the property. (You should not have to pay anything as all costs should have been paid prior to completion).

Your professional advisor or solicitors should be able to give you a guide to the costs involved in selling a property.

(As this is a leased property the additional costs may include an administration fee for providing information; clearing any outstanding debts owed; and retention for works completed but not yet invoiced. This is not an exhaustive list).

What sort of costs should I

expect to pay?

Guide to selling your leasehold property 7

Further information

If you or the purchaser would like more information, please visit www.stockporthomes.org and click on the section titled ‘Leaseholders’.

A guide to your rights and responsibilities can also be found on the communities and Local Government web pages - www.communities.gov.uk/publications/housing/booklet

Accessing our Services

This leaflet gives you information about selling your leasehold property. If you would like a copy in large print, Braille, on audio tape or CD, please contact the Service Improvement Team on 0161 474 2860 or email: quality@stockporthomes.org.

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