Selling your home?

How does a buyer get details of the service charge?

We provide a pre-assignment pack which is currently charged at £240 including VAT. This pack contains detailed information that your buyer needs to know. You or your solicitor should write to home ownership services and ask for the pack. The pack includes

  • a balance of your service-charge account
  • details of any work rechargeable under Section 20 that is being done but which has not been invoiced yet
  • details of any invoices under section 20 that have not been paid
  • details of any work rechargeable under Section 20 that is planned for the future
  • details of any incidents where the lease has been broken
  • service charge details for the last three years

We will give this information to your solicitor within ten working days of getting their letter and payment. Your solicitor must pass on this information to the buyer's solicitor.

All service charge payments, including invoices for work rechargeable under Section 20, must be cleared before the property is sold. As your service charge payments are based on estimated costs, your solicitor will normally ask to hold some money back until the actual costs are known.

Both sides' solicitors must also agree what to do with any underpayment or overpayment left on the service charge account at the time of sale. These are private arrangements and we cannot get involved with any disagreements that start after the property has been sold.

How is my name removed from the service-charge account?

After the property is sold, the buyer's solicitor must write to us telling us about the change of ownership. This letter is called a Notice of Transfer or Notice of Assignment. We must also be told about any new mortgage arrangements. This letter is called Notice of Mortgage. A fee (currently £70) is charged for handling both of these notices. The purchaser must also enter into a Deed of Covenant, there is a £10 fee for this.

We will sign these notices and send a copy back to the buyer's solicitor. We will then change the service charge account details and write to the new owner giving them the reference number, the estimated monthly instalments and details of the various ways to pay. We will also send a copy of our homeowner's handbook.

We will not change account details until we receive these notices.

Who else do I need to tell that I have sold my home?

You must also tell the Council Tax Department, the companies supplying gas, electricity and phone lines, the water board and so on. There are other companies you need to tell that are not listed here, so ask your solicitor if you are not sure.

If you have any questions, please contact Leasehold Manager Tracey Reeder on phone 020 7733 7964 or via email at treeder@bgrmo.org.uk

 

updated 26/11/2011