There are certain costs that you should be aware of if you're buying a property that isn't a new build.

What costs do I need to be aware of when I buy a resold property rather than a new build?

 

Your solicitor will explain their fees, but you also need to think about costs that may apply to the property itself. 

 

 

When you buy a property with service charge commitments you accept responsibility for back-dated cost adjustments from before your occupation of the property. 
We can never be sure in advance exactly what a service charge will be so we make an estimate. Once the financial year has passed and we know what the actual charges were we'll then make an adjustment. If the actual cost is greater than the estimated cost you would be asked to pay the balance. It is important for you to be prepared for this situation.

Your solicitor should negotiate with the vendor’s solicitor to ensure that money from the sale is set aside to cover such a shortfall in the service charge at the end of the financial year.

Example of a shortfall

 

  • You complete the purchase of your property on 25th July 2015. 
  • The management information you have received does not include service charge accounts for the last complete financial year (ending on 31st March 2015). 
  • The accounts are issued by 30th September 2015 as required by law.
  • There was a shortfall of £158 in the service charge collected for the Apr 2014-March 2015 financial year which is charged to your account on 12th October 2015.
  • You are asked to pay the sum within 28 days (this is the requirement stated in your lease).
This is when you would contact to your solicitor providing a copy of the year end accounts showing the charge.

 

You can request this debt is funded using the money set aside by the vendor’s solicitor.

Example of a surplus

 

  • You complete the purchase of your property on 13th August 2015. 
  • The management information you have received does not include service charge accounts for the last complete financial year (ending on 31st March 2015). 
  • The accounts are issued by 30th September 2015 as required by law.
  • There was a surplus of £125 in the service charge collected for the Apr 2014-March 2015 financial year which is credited to your account on 12th October 2015.

You would contact your solicitor providing a copy of the year end accounts showing the credit.

Your solicitor can then advise the vendor’s solicitor of the position and there may be a request for you to refund that credit to them.

 

 

When and how do I pay Home Group?

 

 

You will usually pay by adjusting your regular Direct Debit or by making a separate payment through our payment line (Tel: 0345 141 4663, option 1) using your debit or credit card.

 

 

Alternatively you can speak to your local management team about other payment options.

 

 

Where can I get more information about these charges?

 

 

Our contact details are here.

 

 

For free, independent, advice go to:

 

The Leasehold Advisory Service (LEASE)

 

www.lease-advice.org

 

Tel: 0207 832 2500

 

 

The Leasehold Advisory Service is a Non Departmental Public Body (NDPB) funded by the government to provide free advice on the law affecting residential leasehold property in England and Wales.