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New Build Freehold Service Charge

Hey

First time buyers here
So we are buying a new build on an estate of 54 house that the council have employed a well known local builders to complete. We first went back in June being told completion November. Of course we are not in it yet which I can live with but....

we received all our paperwork from the solicitor on saturday and noticed that it has a site management charge, basically we have to pay the builders solicitors £120 to draw up the paperwork and 'there will probably be a yearly fee' is what it states, of course we haven't signed anything yet.

The main issue I have is that we were not told anything about this when we signed up for the mortgage, reserved the house and even when we have been to site numerous times. It cropped up in the solicitor paperwork.

What rights do we have to dispute this because had i known this I probably wouldn't have gone in for the house and walked away. They are not even given us a yearly amount that they are going to charge.

Any help appreciated
£10 a day - 2015 - £1173.06


check out ukroadcycling

Comments

  • Freehold or leasehold? private estate? Are the council adopting the roads and and therefore street lighting and ongoing maintenance? if not you are going to have to pay for it.

    Who owns the land around the houses? owned through a LLP or managed by someone else for which you have little control over costs?

    Service charges based on what? equal share or floor space of houses? what do they cover? possibles are things like estate maintenance, gardening, water, insurance.
  • This is the thing we have no idea because this is the first we have heard of it, basically I know the council own the land and they are paying to have the houses built so surely my council tax covers that and in the documents it says the council are looking after the roads
    £10 a day - 2015 - £1173.06


    check out ukroadcycling
  • Whoever marketed the proeprty should have explained to you that there would be an annual service charge. Complain to them.
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
  • ethank
    ethank Posts: 2,197 Forumite
    Holiday Haggler I've been Money Tipped!
    You can complain but they are probably unlikely to withdraw the service charge.

    All new builds normally charge a documentation (or can be called 'engrossment') fee

    Councils are not allowed to build properties for sale, only for rent. Are you sure that they have not sold the land for development or have added their land to a wider development?
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    There are freehold estates that nevertheless have management charges to cover the maintenance of common spaces.

    http://www.slcsolicitors.com/guide-view.php?guide_id=46

    The OP should ask his solicitor to check.
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