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Checklist: Questions to ask before you buy

  1. Check with your solicitor how service charges have been divided between individual owners. This is known as apportionment. This should be shown in your lease
  2. Find out how much your service charge will cost
  3. Ask for a detailed list of services that it covers
  4. Find out about service charges in similar developments (age, size, style) in the area
  5. Request a projection of future service charges
  6. Ask to see the management company's most recent set of financial statements, if available
  7. Ask about the sinking fund. If it is low or doesn’t exist, owners may have to pay more in the form of a once-off increase in their annual service charge when significant work has to be done
  8. Ask if there is a history of withholding charges in the complex. Residents who fail to pay the charges may damage the financial health of the management company and its effectiveness. This may in turn affect the value of your investment