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Salet Legal Intelligence

Legal Pack Review

Example: two-bed leasehold flat sold at auction

This report states what the supplied documents say, with a citation for every finding. It is not legal advice and it is not a substitute for a solicitor. Instruct a solicitor to review the pack before exchange.

Summary

Three things change the price here. The buyer carries £3,050 of the seller's costs and fees on exchange, before the buyer's premium. The ground rent doubles every ten years, which lenders and future buyers will price in. And a section 20 notice for £412,000 of communal works is live, with no apportionment for this flat stated anywhere in the pack. The pack contains no searches and no covenant summary, so both are unanswered rather than clear.

What the documents say

Every finding below cites the document and page it rests on.

blocker · special conditions

The buyer pays the seller's legal costs of £1,850 plus VAT and a buyer's administration fee of £1,200 including VAT, both payable on exchange. Neither is recoverable if the sale does not complete.

Auction-Legal-Pack.pdf, page 14

blocker · special conditions

Completion is 20 working days from exchange, not the standard 28 days. Special Condition 9 makes time of the essence and provides for forfeiture of the 10% deposit on default.

Auction-Legal-Pack.pdf, page 15

blocker · tenure lease

Ground rent is £250 per annum, doubling every 10 years for the first 50 years of the term. On the stated review pattern it reaches £4,000 per annum by 2062.

Lease-dated-14-June-2004.pdf, page 8

caution · service charge

A section 20 notice dated 11 March 2026 proposes roof and communal window works with an estimated cost of £412,000 across 24 flats. No apportionment for this flat is stated in the pack.

Management-Pack.pdf, page 6

caution · arrears

Service charge arrears of £2,340 are recorded against the flat as at 31 May 2026. The management pack does not state whether these are to be discharged by the seller on completion.

Management-Pack.pdf, page 3

caution · tenancies

The assured shorthold tenancy is dated 2 September 2024 at £850 per calendar month and has become periodic. The deposit of £980 is stated as protected but no scheme certificate is included.

Auction-Legal-Pack.pdf, page 22

note · title

Title is registered leasehold, title absolute, under title number XX123456. The unexpired term is stated as 178 years from 24 June 2004.

Official-Copy-Register.pdf, page 1

note · fees

The pack lists a buyer's premium of 2% of the hammer price plus VAT, subject to a minimum of £3,000 including VAT.

Auction-Legal-Pack.pdf, page 12

What the documents do not answer

These checklist items are not covered by the pack. Absence of an answer is itself worth knowing.

Searches present or absent - local authority, drainage & water, environmental
Covenants and easements - restrictive/positive covenants, rights of way, flying freehold support provisions

Questions for the solicitor and agent

Send these as they stand.

Please confirm the completion window in the special conditions and whether the searches in the pack are current enough to rely on.
Please send the ground rent schedule - the current figure, every future review, and the escalation formula in full.
Please confirm whether the tenancies will continue or vacant possession is offered, and the current rent and arrears position.
Please confirm which searches are in the pack and their dates - anything absent we will commission before exchange.
Please confirm any restrictive covenants, easements or flying freehold provisions affecting use, works or access.
Please state this flat's apportionment of the section 20 works and whether the seller will discharge it on completion.

Why this pack needed reading

Detected from the listing text, before any document was opened.

auction sale: the listing is an auction - the hammer is a binding exchange on the pack's special conditions
escalating ground rent: listing says "...leasehold with a ground rent of £250 rising every 10 years..."
tenanted / tenant in situ: listing says "...sold with the existing tenant in situ, producing £850 pcm..."

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