Selling Your Property
Selling your Leasehold Property - your questions answered
If you have made the decision to market your property for sale, no doubt you will be busy showing prospective purchasers around. However finding a few minutes to read Mainstays guide to selling your Leasehold property will ensure that your sale proceeds as smoothly as possible- so you can then sit back and relax!
What is a HIP or Home Information Pack and do I need one?
A Home Information Pack (HIP) is a compulsory requirement for a seller of a residential property...
A Home Information Pack (HIP) is a compulsory requirement for a seller of a residential property in England and Wales from 14 December 2007. A HIP is intended to improve the home buying and selling process in England & Wales for homeowners.
A HIP will contain details of the title to the property, local and water searches, details of Leasehold information, if applicable, and an energy certificate. The pack must be provided by the seller or the seller's estate agent, and must be made available to an interested Buyer, as a property will not be able to be marketed for sale unless a HIP is available (subject to certain exceptions e.g. sale of a tenanted property). Under the current system, key information is withheld from both buyers and sellers until a sale is agreed. This often results in costly issues arising later than necessary in the sale process. The Government intends that by using a HIP, information will be provided up front enabling buyers to make a more informed decision sooner and thereby avoid delays, uncertainties and unnecessary expense.
Further information can be found at www.homeinformationpacks.gov.uk
My property is for sale - what should I do now?
The first step is to secure a buyer - but apart from this, there is no need to do anything differently...
The first step is to secure a buyer - but apart from this, there is no need to do anything differently. You should continue to pay your service charge and / or ground rent in accordance with your Lease as these are payable in advance on specific due dates. Dont worry about paying for a period when you may no longer own the property; your solicitor should claim any such sums from your purchaser upon completion - you will be reimbursed!
I’ve got an offer - what should I do now?
Congratulations! The hard work on your part is now complete! You simply need to...
Congratulations! The hard work on your part is now complete! You simply need to give your solicitor Mainstays details. They will contact Mainstays dedicated resales team and advise of the pending sale. If you would like to advise Mainstay directly of your pending sale, please click here. Your solicitor will also raise any pre contract enquiries as received from your purchasers solicitor, which will be answered by Mainstay upon receipt of the relevant administration fee - please refer to the Mainstay tariff to find out more.
My completion date is imminent - what should I do now?
The simple answer is start packing!! At this stage Mainstays dedicated resales staff will be liaising directly with your solicitor...
The simple answer is start packing!! At this stage Mainstays dedicated resales staff will be liaising directly with your solicitor to ensure that all the necessary information required for completion is available.
Mainstay will also ensure that your solicitor is made aware of the balance of your service charge and / or ground rent account as applicable to enable your solicitor to apportion any charges or receipts.
My solicitor wants to hold a retention - what is this and why is it necessary?
For every service charge financial year, Mainstay sets the annual budget for your development...
For every service charge financial year, Mainstay sets the annual budget for your development, based on Mainstays knowledge of your site and (if applicable) the previous years expenditure. It is not possible to budget to the exact penny - and so when the actual expenditure for the site is reconciled with the total amount of service charge collected, it may well show that more was spent than collected. In such cases there may be a one off top-up payment to be made. The period this payment covers could relate to when you owned the property and so your solicitor may retain funds from you (a retention), for this eventuality. If no top-up payment is then due, your solicitor will return your funds.
What if there was more money collected than spent - will I then get some money back?
Should it come to light that more money was collected than was spent, it may be decided by the site to credit funds...
Should it come to light that more money was collected than was spent, it may be decided by the site to credit funds to the Owners service charge accounts. You should ensure that your solicitor makes an arrangement for you to receive such credits from the purchaser, as these will only be given to the Owner of the property at the time the credits are allocated.
I pay my service charge by Amber credit - what should I do?
Make your solicitor aware that you are paying your service charge and ground rent in monthly...
Make your solicitor aware that you are paying your service charge and ground rent in monthly instalments via a credit facility. They will then apportion your service charge and ground rent accordingly with the purchasers solicitor. You should continue to pay your direct debit to Amber Credit until completion.
Once your sale has completed, you should notify Amber credit that you are no longer responsible for the payment of the service charge and ground rent and cancel your direct debit. Your purchaser will then make arrangements for the payment of the balance then due to be paid.
My solicitor says I have to pay Mainstay 1% of my sale price - is this correct?
This will depend on your Lease. All Leases stipulate the conditions that need to be met in the event...
This will depend on your Lease. All Leases stipulate the conditions that need to be met in the event of a propertys Leasehold being sold - some state that 1% of the sale price should be paid by the Seller upon completion. You should be aware that whilst Mainstay will collect this amount, this is received on behalf of the relevant party to the Lease. The money is not Mainstays!
In many cases the 1% fee is paid into the development service charge account and often specifically into the reserve maintenance funds, to contribute towards a planned future maintenance programme for the development.
I have just completed my sale- what now?
You should ensure that Mainstay is informed, either directly by yourself or by your solicitor....
You should ensure that Mainstay is informed, either directly by yourself or by your solicitor. Mainstay will need to be aware of the details of your purchaser, the date of completion and your purchasers solicitor contact information. This will allow Mainstay to ensure that all resale documentation is served in accordance with the Lease and that your details are removed from Mainstays records. If you would like to advise Mainstay directly of your completed sale, please click here.
Please be advised however that without receipt of the legally required documentation as stipulated by the Lease, Mainstay is unable to close your account and amend records to reflect the change of ownership. Mainstays dedicated resales team will of course do everything possible to obtain copies of resales paperwork and have your sale noted on all records.
Selling your property need not be too stressful, but if you do have any queries, please contact Mainstays dedicated resales team (resales@mainstaygroup.co.uk) who will be happy to advise.
