Management Packs Explained
Max Williams, Legal Assistant
In almost all leasehold and occasionally certain freehold transactions, there will be a management company involved. This company will manage the freehold, and any shared facilities. When selling a property, they are responsible for providing a management pack to the purchaser’s conveyancer in return for a fee payable by the seller.
Management packs are a collection of varying documents that contain vital information that may affect a buyer’s decision to proceed with their transaction. It is produced and distributed to the purchaser’s conveyancer so that they can make the purchaser aware of any important factors such as future maintenance on the building. Furthermore, leasehold properties may come with associated fees, for example in a building of apartments there may be communal areas or parking spaces.
The packs also detail any requirements and fees payable to the Landlord or Management Company in order to allow the transaction to proceed. For example, a fee for receiving a notice of transfer (change of ownership form), or a fee to provide a certificate to comply with a restriction against selling the property without the consent of the management company.
It is also important to note that a management pack may be required when purchasing certain freehold properties. This is often the case with new build properties which are part of a larger development. Where there are shared green areas, parks or sewage systems. For example, the residents of the development may be required to contribute to their upkeep and maintenance.
Traditionally, Management Packs Will Include:
– LPE1 Form (Leasehold Property Enquiries Form) – This is completed by the landlord or the management company and provided essential information about the management of the property, including establishing if there are any problems that may arise with the management in the near future. For Freehold properties, a similar form called an FME1 Form (Freehold Management Enquiries Form) is used.
– Accounting information
– Building insurance if arranged by the Landlord
– Fire Risk assessment & asbestos report if there are any indoor shared communal areas
– Details of any proposed future maintenance works
The purchaser’s conveyancer will review all information provided to ensure that all arrears are cleared prior to completion and the purchaser does not incur any unexpected charges and all duties related to the transaction are understood.
For any further information regarding management packs or anything related to residential conveyancing, please contact a member of our team who will be happy to help.