Management companies… how to navigate their painful processes.
In the past, management agents were primarily associated with leasehold flats, but in today's property landscape, even newer developments of houses often involve management companies. So here are our top three tips if you're selling a property where there's a management agent involved...
Once upon a time, only “leasehold” flats needed to worry about management agents, but most newer developments of houses will have management companies as well (think Jennett’s Park, Woodhurst Park, the new Amen Corner etc… and even smaller “new build” developments where the council have declined to adopt the road) will have management companies now. They tend to look after any “common areas” of grass maintenance, insurances for the road, street lighting, a small sinking fund etc, and usually cost the homeowner £300 per year.
Thankfully, we’ve got a couple of decades of experience in helping navigate them so here’s our top 3 tips if you’re selling a property where there’s a management agent involved.
1. Management Pack – when you agree a sale on your home, you’ll need to order a “management pack”. You’ll provide the details of your management company to your solicitor, and they’ll order the pack on your behalf.
The pack is going to cost a few hundred pounds. can take up to 6 weeks to arrive, and your buyer’s solicitor cannot start working on the file until they receive it – so make sure you get that paid for as soon as your sale is agreed.
2. Paperwork – management companies can be painful to deal with at the best of times, despite how much money you’re going to be shelling out for them for their pack! So make sure you’ve got copies of the most recent annual statement and a breakdown of how much you pay them to give to your solicitor as part of your initial paperwork to them.
Bonus points if you have a breakdown to give to your estate agent before they even start marketing your home – we like to be as transparent with perspective buyers, so the more information the better from the very beginning.
3. Solicitors – with the ever-changing legislation surrounding mortgages and what lenders will/won’t accept from management companies, it’s imperative to use a local, reputable solicitor who has likely done dozens of transactions with this management company before.
We often see the need for a “Deed of Variation” to the management terms and they can delay the process by another 12 weeks in some cases – what was fine when you bought the home, may not be fine anymore. There’s nothing that can be done to speed up the process, other than using a good solicitor who knows what they’re doing.
And a final tip from us for any Bracknell residents…. Reach out direct to either Matt or Sanjay any time. We’re the business owners, and we’re on hand to help you navigate this minefield 24/7.
