Advise Needed - New Build

filmAlive

Hi

My wife and I have recently put our reservation fee (£1000) down on a new build property by Bellway homes. This was done last Sunday (18th January)

At the moment that is as far as we have progressed, we have a mortgage adviser visiting us next Tuesday (27th January), and we are looking at solicitors.

However we have come across some detail in our documentation which we are no longer comfortable with and are considering withdrawing.

The reasons for this is the house is being sold as leasehold with a service charge, and management fee's, these totaling around £250 per year and they have the option to increase this each year in line with the retail price index.

One of the management companies is MeadFleet who from reading online are not that good at providing the service, but outstanding when it comes to charging lots of money.

If we were to withdraw would this mean we would simply loose our £1000 or are we liable for other costs / charges?

arbrighton

Firstly, why did you not read that detail before signing and handing over your cash?

Secondly, you've only reserved and therefore have not exchanged contracts so you will just lose your res fee

Zippy-Wallet

This is probably something that the sales office would 'neglect' to mention during the sales process.

I think under most major builders you are entitled to a 50% refund of the reservation fee if you pull out, even without reason.

I wouldn't personally be too worried about the management fee, whilst freehold and council maintained roads is best for budget. In my experience most management companies look after the gardens and up keep of shared areas very well.

The majority of complaints about management companies come from people living in apartments where they have issues over building insurance, water, upkeep and car park management. This is where fees are hundreds of pounds per month - not per year.

If this is the house of your dreams; £250pa is here nor there.

As with all new build properties I would be more concerned about build quality, specification and property value.

ethank

The issue is here that the service charge will triple within 25 years. What is the service charge for?

filmAlive

That's my concern exactly that within a few years of moving in they will increase the charges. Legally they can charge up to £10,000 over a 5 year period (which means they could charge up to £2,000 per year!) which is an extortionate amount.

While I appreciate this may not happen, there is the risk it will.