What is a Management Pack?
A Management Pack (sometimes called a Sales Pack) is a set of forms and documents relating to the sale of a property where a service charge is paid to a management company who may maintain the building of an apartment block of the common areas of a residential estate. The Management Pack provides a full picture of the management company’s accounting history, any proposed works and any obligations expected from any new owner.
Why do I need a Management Pack?
In almost all leasehold and more commonly in new freehold properties there will be a Management Company involved. The Management Company manages the freehold and any shared facilities.
When selling a property, the seller will be responsible for paying for the Management Pack and the seller’s solicitors will obtain this from Landlord/Management Company.
What does the Pack contain?
The pack provides important information for the potential purchaser, including factors such as future maintenance of the building, accounting information, buildings insurance and any fees charge by the Landlord/Management Company.
The pack also contains requirements and fees payable to the Landlord and/or the Management Company in order to allow the transaction to proceed to completion. For example a Notice of Transfer and Charge (if there is a mortgage), and a fee to provide a certificate to comply with a restriction registered against the property requiring the consent of the Management Company (if required).
How much will the cost pack?
The cost of Management Packs is not standardised and varies from Management Company to Management Company. This can vary from £100 up to even £500. This is payable by the seller.
Where the ground rent is collected by one party and the service charge by another, then there will be two leasehold information packs required.
How long will the pack take to be produced?
Again, this is not standardised and will vary depending on the Management Company. The Majority normally take around 2-5 weeks, although some do offer the option to pay an additional fee to expedite the pack.
Freehold Management Packs
If the property is on a relatively new estate, there is more often than not a Management Company in place.
The Management Company services will be detailed in the deeds to the property and in most cases will deal with the maintenance of any shared areas such as footpaths, landscaping and maintenance of grass and/or open spaces. If the road is not intended to be adopted by the Local Authority, this would also be covered.
Each property on the estate will pay an annual management fee for the searches and this fee will vary from estate to estate depending on the size of the estate, location and services provided.