New build and residential management company

Little_star_2

I'm in the process of buying a new build (freehold) on a development consisting of around 70 houses.


The solicitor has informed that the development will be private (therefore roads / paths not to be adopted by council). I did ask at sales office if road was to be adopted by highways and they said yes!!


The residents will pay an annual service / maintenance charge to a agent who will maintain the landscaping, highways, lighting etc for £221 (year 1 costs).


What has people's experiences been with residential management companies?

Pete9501

We bailed out when our service charges reached £2400 a year on a 4 bed freehold property, 10 years old. That fee included bldgs insurance, water, exterior decorating and gardens, plus reservce fund. I have seen the accounts and there wasn't much that could easily be done to reduce them substantially. The reserve was needed for the big bills coming in the future like new tarmac, street lighting etc.

The last of the 4 management companies were just about okay so would give them 6/10, you can work out the other scores.

Think twice before you proceed, oh and the house prices took a massive dive on the new prices and are only now after 10 years back to were they started from. Thankfully we bought at the bottom so didn't loose but the previous owner did.

vw100

A close friend of mine brought a new build flat and the road of the new estate site was private for the first year and then it was adopted by the council. Each year the service charge went up. It started at about £1000 approx. inc ground rent and over the years crept up to £1350. He soon sold up for a bigger place, but these pesky service charges especially when the management company don't deliver value can be annoying. Do you know who the management agent is?

comeandgo

Well are the roads being adopted? We have a residents association and it controls the management company and our bills have not risen much in ten years and we have a lot of land and streams jointly owned by all residents. Our roads have now been adopted. The management company know if they try and increase their management fees we will sack them.

abbe89

The flat I bought in August is managed by an Estate Management company. The whole development is covered by them, and our roads are still privately owned and not adopted by the council.

Currently paying about £45 a month service charge, but got a letter last month saying that my account with them was being credited with £150 as they'd actually made some savings - I think the major one was the cleaning bill for communal areas, went down about £2000.

My one gripe is they can be a bit slow to get things sorted - the exterior light outside the bin shed only stays for a very short time, only just long enough to open the gate. They've said they'd reprogramme the sensor - still waiting for that to happen. Other than that though, no complaints.

All this said though, it's still early days, I've only been there about 6 months and the estate is just coming up to 3 years old. Who knows what might happen with them next year!

Little_star_2

Thanks for your responses.

The roads are not being adopted, probably not being built to an adoptable standard to save costs for tbe builders. So my concern is the cost of repair of roads in few years time when wear and tear creeps in and the affect this will have on service charges. Also the affect on house price if we come to sell...will it be much less compared to similar properties on the market.

The agent is developer eyes.

Guest101

Id be watchful that the developer licensing the parking management to a 3rd party.....

patman99

There is nothing stopping the residents getting together and approaching the Council to get them to adopt the roads.
The process is quite long and there may be a few forms to fill-in.

As for the management company, google 'right to manage' for info about how to kick out the manco and manage the site yourselves.

marksoton

Little_star wrote: »

The roads are not being adopted, probably not being built to an adoptable standard to save costs for tbe builders. So my concern is the cost of repair of roads in few years time when wear and tear creeps in

This would worry me. Massively.

Jon_B_2

marksoton wrote: »

This would worry me. Massively.

+1, this is not common practice.