New Build Maintenance Fees

sternjohn662200

My wife and I at the weekend put a reservation on a freehold 3 bedroom new build property on a large estate near to where we currently live. The estate is currently phase A and they are just starting phase B where we have reserved.

The builder today has just informed us that there is now going to be an annual maintenance fee of £190 which will maintain the communal areas, fields etc. (There wasn't one on phase A and the site office has only just found out today)

Now we are not too concerned on the cost as if it helps to maintain the local area then we are happy enough with that amount, as we have lived in some areas where the communal areas have not be kept nice. I appreciate it will go up each year like council tax.

The concern we have is resale. Whilst we are planning on staying in property long term, im wondering what effect a maintenance contract will have when selling especially when phase A will have similar house types where no maintenance fee applies. Has anyone ever sold a house having one and does it put off potential buyers.

Thanks

John

stator

It won't put off most buyers. It's pretty par for the course these days on new estates. Just get the terms and conditions checked over by your conveyencer.
The questions are really, what will it include? Some new estates have their own sewage pumping stations, perhaps the road may remain unadopted. If that is the case the maintenance fees may go up a lot after a few years when serious repairs are needed.

Pete9501

You might want to investigate a bit further. Things that spring to mind are will the council adopt the roads or will the service charges eventually have to pay for repairs down the line. Will there be a reserve fund so regular contributions or demands for a big cheque occasionally. What about street lights, water supply?

Who is going to manage this? limited company with each owner as a share holder, or some managing agent appointed by the freeholder of the communal areas?

ethank

You need to ask why!

makeitstop

ethank wrote: »

You need to ask why!

Who needs to ask why about what.?

sternjohn662200

Thanks for everyone's responses. Looks like i will need to speak to my solicitor and see what it contains before moving forward as dont want to be stuck with hefty bills in the future.

Was mainly concerned about resale as dont want to be struggling in years to come but if this is becoming the norm with new builds then suppose thats something we would have to accept if we want a new build.

phill99

Years ago, councils would adopt both roads and communal green areas. For some years now (going back to the 1990s), councils are willing only to adpot roads. Green spaces are maintained at the expense of the estate dwellers. They are typically managed by a Ltd Co, and its normally the local residents that act as Directors, Sceretary etc.

My mother lives in a development like this since the mid 1990s. There have been no issues in terms of maintenance. The houses regularly sell and the maintenance fees don't appear to be a deterrent.