Getting Ready To Sell

Preparing Management Accounts

As soon as you decide to sell your ground rents it is a good idea to try and assemble the paperwork that will be needed to ensure a smooth sale. For example it is a good idea to contact your managing agents and asking them to make sure the accounts are up to date and that any arrears can be documented. You will need to sell the buyer how much the arrears are so that you can come to some arrangement regarding payment od the arrears on completion day.

Service Charge Arrears - Lessee Disputes

If there are service charge arrears that have not been paid because of a dispute it is unlikely that the buyer will pay you this because he may be unlikely to recover the arrears from the lessees. It is a good idea to try and resolve any problems around this prior to the sale taking place unless you are prepared to write the arrears off.

Ground Rent Arrears

Ground rent arrears are treated differently as there is often no valid reason why the ground rent should not be paid. The lessees can''t refuse to pay the ground rent because they are unhappy with the way the block is being managed. The ground rent element in the lease is pretty much set in stone and should be paid at all times. It is likely that the buyer will pay the any outstanding ground rent for the last six years but not beyond that