Typically, in the cases of flats and apartments, there will be management companies who will be involved with managing the services for the apartment block. Each leaseholder (flat owner) will need to pay for the services provided by the management company in the name of service charges.

However, there is a common misconception that these management companies apply for leasehold properties only; there can also be management companies for freehold properties.

There are two ways in which management companies can be created; one, the developer will create the company and then will appoint managing agents to provide the services. However, in cases of smaller developments with a few houses, the individual owners may take a share in the company and collectively run it.

The details of the management company can be found within the title deeds to your property and they will be responsible for maintaining common areas such as footpaths, open spaces, car parking areas, etc. Each property owner will be required to make contributions for these services in the form of service charges.

Will this impact the sale of my house?

Properties with management companies is becoming increasingly common and therefore it should not affect the sale of your property. Although, this does mean that additional paperwork will be involved.  If the property that you currently own has a freehold management company involved, you will need to obtain a Freehold Management Pack (also known as FME1) which will include vital information such as the total service charges (including the likely increases), the details of who organises maintenance arrangements for the shared areas/amenities, payment history, budgets, any fees that your buyer may be expected to pay post-completion, etc.  This pack will then need to be provided to your buyer solicitors for review.

No two management companies are the same and therefore the costs for these packs can vary and the timescales to issue them from the receipt of payment can also vary greatly. Therefore, for the smooth running of your transaction, it is important that this management pack is requested at the outset of the transaction to avoid any delays.

For further advice and assistance please contact our Residential Property Team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk

When you purchase a property, large sums of money change hands. This makes it susceptible to fraud and means that if you are purchasing a property, you will need to prove how you have obtained the funds to do so.

When you speak to your Solicitor you may hear them saying that they await ‘source of funds.’ Although other solicitors and agents involved in the transaction are aware of what this means, it often causes confusion with our clients as people don’t really know what is required to satisfy this element of the transaction. It is not just a “tick box” exercise where we scan over statements, we are legally required to obtain and check this information. I promise we are not trying to be difficult on purpose or accusing you of doing anything wrong!

We don’t just need to see a statement showing the funds in a bank account, this is the “proof” of funds rather than the “source”. The source of funds will show us how the funds for the transaction have been legitimately earned or obtained. The source of funds we receive should essentially show a paper trail for how the funds originated and then how our client has come to hold these funds and whether they have the authority to use them in a house purchase. An example of this “paper trail” would be that a company pays their employee a salary, the employee saves over x amount of time, and the bank statements show this pattern of earning and saving.

Not all source of funds are the same and some are more difficult to obtain information for than others. We of course understand that the information isn’t always readily available and will sometimes take a little while to filter through to us.

Often we have clients whereby the source of funds, or at least part of it, is coming through a “gift”. The term of something being a “gift” in conveyancing and how the word is used in daily life can differ slightly. A gift is where someone who is not a named purchaser of the property is still contributing money towards the purchase. This gift does not give any rights to reside in the property and does not amount to ownership, there are various forms throughout the transaction that will have the giftor confirm this. If your giftor wants security over their money by way of putting some form of restriction on the title then this can be done alongside as a separate transaction, we would also check that the lender consents to the monies being protected. It is important that if you are getting a mortgage that you explain the circumstances of your gift to your broker/lender so that they can check this is acceptable, some lenders are only happy with certain people giving gifts, such as family members.

If you are unsure on what documents you need to provide due to it being an uncommon source – you can simply ask the team and we are more than happy to tell you. It is much easier to tell you what we need rather than to sift through mountains of documents that you think could possibly help! Whether it be from an inheritance, dividend payments, divorce settlements or just normal savings – we can tell you what we need to make the process as smooth as possible for you, you are just in charge of actually obtaining the required documents to support the source.  

For further advice and assistance please contact our Conveyancing Team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk

I’m Denise Watson, an Associate Partner in our Conveyancing Department based at our Northampton office.

I joined Franklins at the age of 16 on a Youth Training Scheme, which nowadays would be similar to an apprenticeship. The Scheme lasted a year and when it finished, I was taken on as a permanent member of staff.

Initially, I was an Office Junior and assisted with some reception duties. I then started helping out generally within the Conveyancing team and was trained in-house by Keith Wyld, one of the founders of Franklins, as well as studying with the Institute of Legal Executives.

I’m very grateful to Franklins for the opportunities they have given me and I’m proud to be able to say that I started my career journey as an Office Junior and worked my way up through the ranks to Associate Partner, specialising in Residential Conveyancing.

I now manage a dedicated team of five who handle all aspects of Residential Conveyancing, not only serving the local markets but advising clients all over the country on new home purchases and affordable housing.

There is no typical day for me, apart from what I call ‘the legal bits.’ This is where I review paperwork for the properties we are buying and selling for our Clients. I check over all the legal aspects that might affect the property and contact the Client to discuss any issues.

The varied bit of my job comes when I’m doing ‘the communication bit.’ This involves phone calls and emails to Clients and property professionals who are all part of the process.

For many people, moving house is a very daunting and stressful process. We strive to keep all parties within the process up-to-date at every step, getting in touch with them to let them know what is happening and what needs to happen. I enjoy dealing with what looks like a really difficult issue, finding a solution and resolving the situation. I want to have happy Clients!

Franklins is like my extended family, I’ve not worked anywhere else and only took a few years out when looking after my young children.

They have supported, trained and coached me into being the best I possibly can be. If there is anyone that is thinking of joining Franklins, I would highly recommend them as being great employers, you just need to look at the many staff who have been with the Firm for years.

To find out more about how Denise and her team can help you with the purchase of your new home, call 01604 828282 or email CONDXW@franklins-sols.co.uk

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