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Most freeholders will use the services of a managing agent and during the conveyancing process any charges they make fall outside the terms of the lease under a separate contract and are classed as administration charges .They are usually negotiated between the mananging agent and the agent of the seller, chargeable to the purchaser, and cover the following areas:

  1. Answering pre-contract enquiries;
  2. Approval and supply of Letter Licence for Alterations;
  3. Certified copy of a Share Certificate/Membership Certificate;
  4. Consent to sublet;
  5. Deeds of covenant upon sale;
  6. Ensuring consent is required/granted before sale;
  7. Mortgage registration after a sale;
  8. Registration of the assignment-the change of lessee after a sale;
  9. Remortgage Notice of Charge (including service charge & insurance information);
  10. Remortgage Notice of Charge (receipting only);
  11. Supply and/or administration of Deed of Covenant;
  12. Supplying information packs (to answer leasehold enquiries)but with no statutory guidelines on what can be charged;
  13. Transfer following sale (including issue of Share/Membership Certificate).

The agent is free to charge what they wish as there is no statutory guidance but are required to be reasonable, synonyms of which are ‘sensible, rational, open to reason, full of common sense, logical, fair, fair-minded, just, equitable (fair) and decent’.

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