Fresh from her column in the London Evening Standard, Fiona McNulty answers questions on paying a 'rentcharge' on a freehold property, and the pros and cons of using a estate agent when selling your house.
 

Q.  I live in a freehold property.  Last week, I received a letter from a company saying that they hold a ‘rentcharge’ over my home and that I have to make an annual payment to them. It’s only a small amount, but what is it?

A.  Rentcharges have existed since the 13th Century and traditionally provided an income for land owners who were prepared to let their land be used for development. A rentcharge is an annual payment which is usually less than £10. Basically, once created, a rentcharge applies to all subsequent owners of the affected property, and you should pay it until it is extinguished. If your title to the property is registered, the rentcharge should be noted in the charges register of the title and so should not be a surprise to you.

You could contact the Company and ask if they will accept a payment to release you from the rentcharge. Alternatively, you could contact the Government Office for the North West, which is responsible for all applications for the redemption of rentcharges under the Rentcharges Act 1977. The Government Office will work out the price for redeeming the rent charge, and the owner of the rentcharge will be obliged to accept this sum. Sometimes this sum will be less than the amount the company would require had you approached them direct, but the disadvantage is that the Government Office process is usually slower.

Q.  My husband died two years ago and I wish to sell my house, which is too big for me. For probate purposes, two agents valued the house at around £7 million.  My neighbour knows I want to downsize and wants to buy it privately from me without using agents. What do you think?

A.  Without an agent, you will have to negotiate with the buyer yourself, but you will not need a Home Information Pack, although your buyer may ask for an Energy Performance Certificate.  However, the two valuations were for the specific purpose of probate - you need a current market valuation. Have two or three market valuations from reputable agents, as the market is tricky at the moment, with properties difficult to value. Compare and see how they differ.

An agent will help you agree the sale price, ensure you obtain the best possible price for the house, and help you agree a price for any fittings and contents you may wish to sell. The agent will also help you with other things, such as visits by the buyer’s surveyor or architect, and, if your buyer needs a mortgage, you agent should be able to chase this up.

Your solicitor may only communicate with the buyer's solicitor and not directly with the buyer, unless the buyer is acting in person. Your selling agent may speak directly to your buyer, so this often helps speed up matters. You should find the service of a good, reputable selling agent beneficial, although you must, of course, weigh this against the fee which you will have to pay that agent.

For more information, contact Fiona McNulty on 01225 340223 or email fmcnulty@ttuk.com