New Estate - Management company charge

mattyh

A few months back we moved into a new house on a new estate. We know that this development (apparently like a lot of new developments) would be maintained by a management company rather than the council. (It appears that despite extortionate council tax rates - maintaining some block paving and a grassed area it beyond the remit of the criminals at the council....)

Anyway, we were given an estimate of £13 per month when buying the house. The bill for this year actually works out at £23 per month.

We've been given a full breakdown of costs, but where do we stand on this? It's in the deeds that we have to pay, but what say do we have in the costs etc? In theory could they charge us exactly what they want in the future?

Richard_Webster

Did you get a share in the management company? If so you can get together with others on the estate and go to the company's AGM and get things altered.

Sometimes builders set up these companies and give people shares in them but the company is actually run in practice by a big property manager organisation. The property manager charges admin expenses and accountants fees, public liability insurance, etc.

If you do get a share then you might be able to disentangle yourselves from the property manager and run the company yourselves, making sure you file the annual returns to keep the company going.

In other cases you can't because you have no shares in the company. You may be able to challenge the size of the charges but it could well cost you more to challenge it than the savings you would make. Also in a lot of cases the consent of the company is required for registration of a transfer to a buyer at the Land Registry so they will refuse this consent if you are in arrears with the payments!

This situation tends to occur because when the builder is going through the planning process the Council tell him that they will want a contribtion for £xxxxx towards the future maintenance of some open space or play area. Builder says he's not going to pay that. He'll set up a company and get the residents to pay... Council accepts this.

As a conveyancing solicitor I believe these pointers may be useful to people but I cannot accept any responsibility to anyone other than a paying client.

mattyh

Thanks for the reply, that clears it up a bit. Looks like unless i want a lot of effort and/or expense it's a case of pay up and shut up!

I'll just have to make sure I get my money's worth They have an online 'maintenance issue logging' service....It's about time that block paving had another steam clean methinks!