Buying your home
If you are considering buying a council owned leasehold flat or maisonette please ensure that your solicitor explains the details of the lease clearly.
Although we will be pleased to answer any queries we would always advise you to seek professional, independent advice before you go ahead with the purchase either on the open market or through the right to buy scheme.
Limits on the amounts paid under service charges
Section 125 of the Housing Act 1985 requires the landlord to give an applicant under the right to buy scheme an 'offer notice' indicating the purchase price of the property and outlining other relevant matters.
In respect of leasehold property this offer notice must include estimates for the Annual Service Charge plus a schedule and estimated costs for major works of repair and/or improvements to the property that may be carried out during the next five financial years.
We cannot charge you for work, including day to day repairs, major works and improvements in excess of the estimates given in the offer notice, although this is subject to an allowance for inflation during the initial period. This initial period starts when the notice is served and ends with the completion of the fifth full financial year after the date when the property was first sold.
These limits apply to the lease, not the purchaser, so they continue to apply if the property is assigned during the initial period.
After the initial period has ended we can charge you your full share of the reasonable cost of any work.
Further information
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Document Created:
14/09/2009 16:37
, last modified:
16/11/2010 10:29