The Lease
When a Council flat is initially sold under the Right to Buy the Leaseholder is granted a 125 year lease.
If you sell your flat in the future, the new owner will acquire the time remaining on the lease. So, for example, if you have lived in the property for 10 years, the new owner will have a lease of 115 years.
What Happens To The Service Charges?
You are responsible for the payment of all service charges while you are still the owner of the property. This applies even if the property is unoccupied.
Under the terms of your lease, if you sell the property within a quarterly billing period you are responsible for the payment of the service charges for the whole of that quarter. So, for example, if you sell your flat on 20 November you are responsible for payment of the full quarter from October to December inclusive. Your solicitor may wish to negotiate a pro rata payment from the purchaser on your behalf to cover the period after the property has been sold.
When the actual costs are calculated the following year, the service charge account of the new leaseholder will be adjusted to take account of any difference. This applies whether there has been an overpayment or underpayment during the previous year.
Who Do I Need To Inform That I Have Sold The Flat?
You need to inform Wigan and Leigh Housing if you sell your flat. You should do this in writing to the Income And Home Sales Section . Your solicitor will usually do this on your behalf.
You should provide the date of the sale, the new owner's name and confirm whether or not the expenditure reserve fund is being transferred to the new owner. When the new owner’s details have been provided, the leaseholder details and service charge records will be amended accordingly.
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