What’s a management pack when you are buying a house?

Management packs are collections of documents about a leasehold property. They are provided to new buyers and contain essential information to help you stay aware of any legal requirements, additional fees, or proposed maintenance on your property. Management Companies can provide management packs to the buyer’s conveyancer for a fee, normally between £150 and £500.

What is a leasehold property? 

When buying a house, you can generally get a freehold or a leasehold property, though some properties may be a mix of both. A freehold property means you are the sole owner of the property and the land it sits on. However, with a leasehold agreement, you can live in the property for an extended amount of time, but the Landlord continues to own the property and land.

A situation of where a property is both freehold and leasehold could occur when the house itself is freehold but the garage is separate from the house, in a block for example, and is leasehold.

Management packs are most common with leasehold properties, but certain new-build freehold properties can also come with management packs.

What is a management pack? 

Management packs make the buyer aware of fees, maintenance, health and safety assessments, management responsibilities or forms that need to be completed. They can take between 3 to 6 weeks to receive and are procured through a Management Company.

Management packs also include a LPE1 form (Leasehold Property Enquiries Form). This outlines the essential information that the buyer needs to know about the property or any issues with management that could arise in the future.

What does a management pack include? 

A typical leasehold management pack can include: 

• A LPE1 form 

• Ground rent and payment deadlines 

• Service charges 

• Fees payable to the landlord 

• Arrears 

• Required maintenance  

• Management account history 

• Fire risk and asbestos assessment certificates 

• Additional fees 

• Contact details for the Freeholder 

A freehold management pack can also include information about communal areas which need to be maintained by residents in the community.

If you receive a management pack, take your time to read it thoroughly so you are not surprised with unexpected costs or responsibilities.

At DFA Law, our personal law team can provide advice on anything outlined in a management pack to help you stay informed. To learn more, call 01604 609560 or email info@dfalaw.co.uk.