Lease, Maintenance, Sink Fund

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    Lease, Maintenance, Sink Fund

    Hi, hope I am posting this question in the correct forum.

    I am a first-time buyer who is looking to purchase a buy-to-let flat. I am struggling to find out the cost of properties' lease, maintenance and sink fund. Has anyone here had the same issues?

    #2
    Standard pre sale enquiries for the vendor, nobody on here can tell you .......

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      #3
      You could call land registry and get the lease duration. Actual lease us also available for 7-14 pounds.

      Maintenance - it depends I would say average numbers in London between 0-2k.
      It does depend if there is a lift, concierge large territory to maintain or just 1 flat down, 1 flat up.

      Sink fund - if there are major works scheduled, lease allows it and the money in the sink fund stay with the flat.

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        #4
        All flats in E & W are sold under leasehold title which under the lease requires the flat buyer ( as leaseholder) to pay annual ground rent plus annual service charge. The annual service charge is to cover the cost of maintenance of the building and buildings insurance , and some leases may include provision for setting up sinking fund for long term repairs ( e.g replacement of roof tiles and wooden window frames. ).

        One of the morning papers ( Guardian ) reported the average service service cost in 2018 is about £1800 p.a .

        When you visit the estate agent advertising the flat, you can ask for details of the lease term,including payments for annual ground rent and annual service charge payments from seller.

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          #5
          THe freeholder has to tell your solicitor what the current and next years service charges are.
          They have to tell you ( him ) what the next 3 years service charges may be ( simple-- just like a car, you will know that in 12 months time it will need a full service, or in 5 months time you will need new tyres, and in 5 years time a new ckutch )

          All you are asking for is contained in the LPE1 form the freeholder is requested to fill in.

          Just ask your conveyencer or solicitor to forward a completed PLE1 form to you as soon as they get it.

          LPE1 form is found at
          https://www.lease-advice.org/files/2016/08/LPE1.pdf

          Comment


            #6
            ram,

            Pretty sure the freeholder is not actually obliged by law to answer the LPE1. It is of course normal to expect them to do so.

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