Estate agents Bromsgrove can help you with buying and selling property, including with areas such as service charge and ground rent. People purchasing properties on leasehold usually find it confusing to differentiate between ground rent and service charge. A lot of people don’t actually know what service charge and ground rent are for and they have no idea why they should pay. To start with, ground rent and service charge are not the same thing and they don’t serve the same purpose. Ground rent is the amount that you are supposed to pay to your landlord or freeholder because when you buy the property you don’t own the land, so you will basically be paying for using the land the property sits on. The amount is usually a fixed sum and it is paid annually.
Estate agents Bromsgrove can help you if you are looking into service charge and ground rent for properties in the area. Service charge on the other hand, is the amount you are supposed to pay to the freeholder for the upkeep of the building. This includes services like cleaning communal areas (for instance the gardens, entrance halls, corridors etc.), heating the building, building insurance, maintenance and repairs etc. the service charge is supposed to be paid before the services can be provided but in some cases the landlord might be needed to pay before collecting the amount from the tenants. In most case the service charge will be collected though the management company on behalf of the freeholder. As a leaseholder, you are supposed to pay all the amounts as they are stipulated on the lease. It is very important to use a solicitor when you are buying a leasehold property. A solicitor will investigate if there is going to be any additional charges of on the service charges and ground rent in the coming years. After you have purchase the property, the solicitor will ensure that all the arrears are paid so you can be sure to be free of any ground rent scandal in the future.