What is a Leasehold Management Pack?

This is one of the most important documents as it contains information regarding the freeholder, landlord and the management company. This form is prepared by either the landlord or the company responsible for managing the property. Whilst this document is not legally required, it will likely be fulfilled.

Some key information on the form includes;

• Contact information for the freeholder, landlord and anyone else responsible for the property
• Transfer and registration - registration deed, cost and license
• Shared agreements, boundaries and disagreements
• Insurance information including building
• Deed of covenant including any costs associated

The EWS1 (External Wall System Fire Review) form helps lenders determine whether the external wall of a property is safe. It specifically identifies the presence of any combustible materials in the wall system. While it is expected for buildings over 18 metres tall, some lenders may require it for properties taller than 11 metres. This is particularly the case if there are concerns about fire risks.

The form is valid for 5 years but may need to be updated sooner if significant changes occur. Although it is not a mandatory form, most lenders will expect it as part of the leasehold management pack.

This is the rent that is provided to the owner of the freehold. It is the cost of the land that the property sits on and not the building itself. The average cost of ground rent in the UK is £366. It does not cover any additional costs made to the leaseholder for other services. This statement will confirm exactly how much the leaseholder will have to pay upon purchasing the property.

This statement covers any additional costs required by the freeholder. What is included in this will depend on what type of building you are leasing and the shared areas within the property.

Some common services include:

• Maintenance costs and repairs
• Cleaning of shared facilities
• On-site security
• Insurances

When buying a property you will need to know exactly the condition of the property. This includes any future work planned for both your property as well as the building itself. So this should be included in the pack.

If you are buying a flat in a property owned by a freeholder, they will typically cover the building's insurance. In buildings with multiple flats, if building insurance is covered by the leaseholders it generally split amongst them. This will either be split equally or proportionally depending on the size of the property. The terms regarding building insurance will depend on the agreement you have with the leaseholder.

When buying a leasehold property it's important to know how the building has been managed. The last 3 years of annual accounts will give you a good idea of this information. It will provide information on the finances of the building, which should ease any fears over maintenance or repairs.

For any property that was built before 2000 in the UK, an asbestos survey is likely to need carrying out. Whilst it is not legally required in residential properties unless in communal areas, homeowners expect one to be carried out.

The survey will detail

• Where the asbestos-containing material (ACM) is located
• The quantity and condition of the ACM
• Any action required to treat the ACM

Checks should be carried out annually unless the risks are low and mitigated.

Read more on Buying a House with Asbestos