Selling Leasehold flat - who pays Service Charge?

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    Selling Leasehold flat - who pays Service Charge?

    I have a bill to pay the next 6 months service charge on a flat which is being sold. Should I:
    - Pay it now and expect my conveyancer to do a pro-rata split with the buyer when the completion moneys are calculated.
    - Try to arrange a month-by-month payment until I know when completion will be
    ... i.e. am I likely to be able to recover the SC if I pay for a longer duration than I own the flat?

    Thanks.

    #2
    Pay it now and expect conveyancer to do a pro-rata split with the buyer when the completion moneys are calculated.
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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      #3
      Who says it is for the next six months as opposed to the last six months (or even the last lease year ending 6 months ago)? It depends on the basis of your SC calculations and your lease.

      Apportionment of service charge is entirely matter for negotiation between vendor and the purchaser and there is no fixed rule laid down in law. Often this is done on a daily basis if service charges are based on prospective estimates as opposed to retrospective actual costs. Ideally this mechanism should have been agreed at the same time as the price was agreed and in the same way you agreed how to charge for your light fittings (the purchaser would take into account the method chosen in the calculation of how much he was prepared to pay).

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        #4
        If it's due now then pay it now. Apportionment can form part of your negotiations if wished. In my experience of buying 2 flats and selling 1, charges have been pro rata split and this has been sorted by the solicitors. I'd imagine this is normal unless either buyer/seller objects which will then require negotiation if there is a disagreement.

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          #5
          Originally posted by fizzykoi View Post
          I have a bill to pay the next 6 months service charge on a flat which is being sold. Should I:
          - Pay it now and expect my conveyancer to do a pro-rata split with the buyer when the completion moneys are calculated.
          - Try to arrange a month-by-month payment until I know when completion will be
          ... i.e. am I likely to be able to recover the SC if I pay for a longer duration than I own the flat?

          Thanks.
          You need to pay everything that is due now, according to your lease. If that says you must pay on 1st January to cover you up to the end of June, so be it. If you dont you can be in breach of lease and you wont be able to sell your flat.

          If your solicitor is anything other than useless he/she will work out an apportionment and the buyer will pay you their share back.

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