Selling & Re-mortgaging your home

Selling a Right to Buy home

If you sell a Right to Buy or Social HomeBuy home within 10 years of the start of the lease term, you usually have to offer it to the Council first. This is called the ‘right of first refusal’ and is both:

• a legal requirement
• a condition of your lease or transfer of freehold

You must offer it to the Council before:

• agreeing a sale on the open market
• new owners can register legal ownership of the property with the Land Registry

Your solicitor should check if your sale is exempt by law (known as exempt disposal) and whether you need to repay any discount.

All enquiries regarding selling a Right to Buy home within the first 10 years of its lease term can be made via Southwark Councils website:

https://www.southwark.gov.uk/housing/homeowners/selling/selling-right-buy-or-social-homebuy-home

Management Packs

When you are in the process of selling or mortgaging your home, your buyer or broker may need a management pack containing pertinent information from us.

Bank details for payment of Management packs & Notices of Change are as follows:

Leathermarket JMB

Account number: 00006582

Sort code:              30 93 23

You must quote the address of the property as reference when making a payment.

Selling

These packs are called pre-assignment packs, as they are the in anticipation of the lease/transfer of part being re-assigned to a new owner.

It contains information about your property; it can also be used by your solicitor to complete the Law Society LPE1 form.

The pack includes:

• 3-year service charge history
• current service charge account balance and statement (including ground rent for leasehold properties only)
• details of section 146 notices served on the property for non-payment of service charges, any court fees and interest payable (leasehold properties only)
• building insurance policy details (leasehold properties only)
• list of section 20 notices served on the address (leasehold properties only)
• planned major works for the block and/or estate
• asbestos risk assessment for the building (communal parts only) (leasehold properties only)
• notice of change fee (a change would be the name of a new assignee and/or a charge on the property)
• landlord’s name and address
• details of any management company acting on the council’s behalf
• the latest Fire Risk Assessment for the building (communal parts only) (leasehold properties only)

Cost

• The pre-assignment pack costs £276.30 and we aim to send it within 10 working days.

Should you require copies of S20 and/or S20B notices that have already been served on the owner, there is an additional a £50 administration fee.

Should you require a copy of the lease please visit the Land Registry in the first instance.

All packs are issued electronically.

Re-Mortaging.

If you’ve applied for a new mortgage or to borrow more money, your lender or solicitor may need information from us.

The mortgage pack includes:

• current service charge account balance and statement (including ground rent for leasehold properties only)
• number of properties currently sold within the block range
• details of section 146 notices served on the property for non-payment of the service charge and any courts fees and interest payable (leasehold properties only)
• building insurance details (leasehold properties only)
• notice of charge fee
• landlord’s name and address
• details of any management company acting on the council’s behalf

Cost

• Our standard Mortgage pack costs £129.00.
• The Mortgage pack including confirmation of section 20 notices served on the property and planned major works to the block and estate costs £269.00.

Should you require copies of S20 and/or S20B notices that have already been served on the owner, there is an additional a £50 administration fee.

Should you require a copy of the lease please visit the Land Registry in the first instance.

All packs are issued electronically.

Notice of Change

The Southwark Right to Buy lease states that the lessee must inform the Council (or its managing agent) if there is a change that would affect the title or circumstances of its original inception within one month.

The homeowner needs to tell us about certain changes so that we can update our records and ensure we are sending information to the right person.

Let us know about:

• name changes (documentary evidence will be required)
• a change in ownership (also known as a notice of assignment)
• a change of mortgage company (also known as a notice of charge)
• Probate letters of administration (documentary evidence will be required)

Cost

The fee amount is stated in the lease and is applicable per change of circumstances.

An example:

When the property has been sold on the open market and the new lessee has a mortgage lender, the homeowner would be informing us of 2 changes.

Report a change for free

Leathermarket JMB Ltd will not charge the fee under the following changes in circumstances:

• A ‘Care Of’ contact if a service charge payer dies (documentary evidence will be required)
• Correspondence contact details for non-resident homeowners