Our property experts have provided some information and answers here to some frequently asked questions regularly raised by our clients who are selling a property.
Apportionment of leasehold service charges
In respect of a leasehold property or a property which has a liability to pay any type of service charge, the amounts will be split (apportioned) between the buyer and seller on completion.
The annual charge will be split so that the seller only pays up to the date of completion and the buyer takes liability thereafter. If you have paid the yearly charges in advance, we will ensure that the buyers share is paid back to you with the completion monies.
Cancelling your buildings insurance
If you are selling it is important that you should continue the insurance on your property until exchange has taken place. Unless you have an ongoing claim, you should cancel your buildings insurance on the completion date. You should let us know immediately if you are in the process of making a claim on your policy. It may be necessary for the benefit of the claim to be transferred to your purchaser. Therefore, you should let us have full details as quickly as possible so that we can consider the way in which we can deal with the matter.
Inheritance Tax and Capital Gains Tax
Certain land transactions may attract a liability for inheritance or capital gains tax.
For Inheritance Tax purposes where the value of the deceased person’s assets (including the value of property) exceeds the exempt amount a liability may arise.
With regard to Capital Gains Tax, various rates apply depending upon the circumstances.
We are not tax experts and would refer you to an accountant or qualified tax expert If you have any queries regarding potential liability in respect of these taxes.
What time do I need to vacate the property on completion?
Under the Law Society contract conditions this is 2pm. However certain contracts vary this and can be from midday onwards. We will report the time to you before completion.
Who pays the agent’s commission and redeems our existing mortgage?
Fosters will deal with this on completion.
How we can help
Our property experts will advise and work with you throughout your matter with us, and keep you informed about how your case is progressing and any issues that may have arisen.
If you are a current client and have any questions about your property transaction please contact your team directly.
If you would like information about our property services please visit our Property section, or contact our New Business team directly. We can provide a free no obligation online quote direct to your inbox, or over the phone by calling 01603 620508.
Law Society accredited
The Law Society awards accreditations to legal practices and solicitors who meet the highest standards of technical expertise and client service in specific areas of law. We are members of their Conveyancing Quality Scheme (CQS), which is the recognised quality mark for legal experts in buying or selling property, and is trusted by some of the UK’s biggest lenders.
