What info can we expect to be provided about an Estate/Service Charge before putting in an offer for a share of freehold property?

[wonnadoo]

If considering putting in an offer on a share of freehold apartment, which has a £3000 annual estate charge, is it reasonable to ask for a full list of what that does and doesn't cover, who manages it, and what control we would have over decision making?

We did ask the agent at the viewing, but they were a bit vague. We've sent a follow up message asking for more info.

Ideally we'd like to see the actual agreement before putting the offer in, but I realise the vendor might not share this until further into the process.

What can we reasonably expect?

I should think the charges will include a fund for repair and maintenance to the building’s structure and roof, grounds maintenance and lighting etc.

Id want to know more than just the annual figure and don’t think it’s unreasonable to ask precisely what it covers and how much it increases year on year.

So it's a flat in an building with share of the freehold? It will likely be a sinking fund to cover repairs to the building. It might include insurance. If you bought the flat with a share of the freehold you would be a named director in the building and have to register with companies house (so you would have a share in the decision making of the building). You should be able to look up the address on companies house and that will give you more info.

You can ask, but it reality, until you’ve had an offer accepted, I wouldn’t expect much. That kind of detail typically comes before exchange. An organised vendor might have the info to hand. Nothing to lose by asking.

My offer would be predicated on a well managed property. If they don't want to share the books (and last 3 year meeting notes) then I'd walk away assuming that they had something to hide. I'd leave the property to someone more knowledgeable, foolish or brave.

I'd expect full transparency. A copy of the management accounts, and full details of what work has been done over theist 5-10 years, what is budgeted for and anticipated, what has come up recently as unexpected costs, reserves and how the funds/decisions are managed and made.

Only some property owners are likely to be directors, not necessarily all, it depends how many flats are in the building.

The current owners should be able to provide the name of the management company that owns the freehold along with accounts, or, if you know the name, you can just look them up online at Companies House and check them out yourself.