When buying or selling a property, particularly a leasehold flat or a freehold house on a managed estate, you’ll likely encounter the term “management pack”. This crucial set of documents plays a vital role in property transactions, providing key information about the property’s management and associated costs. In this article, we’ll explore what a management pack is, why it’s important, and what it typically contains.
A management pack, also known as a sales pack or leasehold information pack, is a collection of documents and forms that provide detailed information about a property’s management arrangements. It’s particularly relevant for leasehold properties, such as flats, and some freehold properties on managed estates.
The pack is prepared by the property’s managing agent, landlord, or management company. It offers a comprehensive overview of the property’s financial history, planned works, and the obligations that come with owning the property.
Management packs are essential for several reasons:
While the exact contents can vary, a typical management pack includes:
This standardised form provides key information about the lease, service charges, ground rent, and management arrangements. For freehold properties on managed estates, an FME1 (Freehold Management Enquiries) form may be used instead.
This includes current service charge amounts, payment schedules, and statements showing any arrears. It may also include budgets for the current financial year and accounts for the past three years, as required by the Service Charges (Summary of Rights and Obligations, and Transitional Provision) (England) Regulations 2007.
Information about the current ground rent, payment dates, and any planned increases, in line with the Leasehold Reform (Ground Rent) Act 2022.
Details of the buildings insurance policy, including the sum insured and a copy of the policy schedule, as required by most mortgage lenders and the Landlord and Tenant Act 1985.
Details of any planned major works or improvements, along with estimated costs, as recommended by the Royal Institution of Chartered Surveyors (RICS).
Information about the management company or managing agent, including contact details and company accounts.
This may include fire risk assessments, asbestos surveys, and other safety-related documents, as required by the Regulatory Reform (Fire Safety) Order 2005 and the Control of Asbestos Regulations 2012.
Information about any fees payable to the freeholder or management company when the property changes hands.
Details of any reserve or sinking fund, which is money set aside for future major works, as recommended by the Association of Residential Managing Agents (ARMA).
Minutes from recent Annual General Meetings of the management company or residents’ association.
If you’re selling a property, your solicitor will typically request the management pack from the managing agent or freeholder on your behalf. As the seller, you’re usually responsible for paying for the pack.
The cost of a management pack can vary significantly, typically ranging from £200 to £500. Some managing agents offer an express service for an additional fee if you need the pack quickly.
It’s worth noting that management packs usually have an expiry date, often around 3-6 months from the date of issue. If your sale takes longer than this, you may need to pay for an updated pack.
The time it takes to receive a management pack can vary. Most managing agents aim to provide the pack within 2-4 weeks of receiving the request. However, some may take longer, especially if they’re dealing with a high volume of requests.
If you’re selling a property, it’s a good idea to instruct your solicitor to request the management pack as soon as you put your property on the market. This can help avoid delays later in the conveyancing process.
Once received, your solicitor will review the management pack and raise any queries with the managing agent. As a buyer, you should also review the pack carefully. Pay particular attention to:
If anything is unclear or concerning, don’t hesitate to ask your solicitor for clarification.
Management packs are a crucial part of many property transactions, providing valuable information about the ongoing costs and obligations associated with a property. While they can seem complex, understanding what’s in a management pack can help you make informed decisions when buying or selling a property.
Whether you’re a buyer or a seller, working with an experienced solicitor can help ensure that all the information in the management pack is properly reviewed and any issues are addressed before the sale completes. This can help make your property transaction smoother and more straightforward, giving you peace of mind in your property dealings.