Ex housing association property liable for service charges?

lost_in_translation_2

We bought our property in 2007. Previously it had been a housing association property but in 2000 the tenants earnt the right to buy and purchased the house freehold. During the sale we were informed, at the last minute and by the estate agents, that there was a small annual service charge payable to the HA to cover maintenance of communal areas (paths, grass, street lights etc) and that if we didn't pay that year's charges the vendor would pull out. We were young and naive and so paid and didnt seek legal clarification. For 8 years we have paid these service charges, however, our small annual fee has become a much larger monthly fee and we are now examining the legality of us 'inheriting' these charges to begin with.

In our title deed it states that the 2000 coveyancing (ie When the tenants purchased the freehold) included 'restrictive covenants'. Our conveyancers [STRIKE]were crap and[/STRIKE] never bought this to our attention or explained what such covenants might be. I know we can order further documents from the Land Regsitry to find out more but which ones and what are we looking for?

Also, if we determine that these charges are indeed ours to pay, does anyone know anything about 'freeholder sinking funds'? Apparently our HA has one and our contribution is around 50% of our yearly service charge. No one at the HA can tell me wat this fund is for, and from my research such funds tend to be paid into by leaseholders for work on communal parts of their buildings. We maintain our property ourselves so what could such a fund be for? Or are we just being ripped off?

Thanks

DUTR

Not so sure about ripped off, think more so the readers are being spun a line, so early on a Sunday morning, the queiry comes to head and a 1st poster finds the right forum to post into. When you purchased this was completed via a solicitor which you appointed, they are the 1st port of call.

moneyistooshorttomention

the land registry rep comes on this sub forum Monday to Friday. I expect they will answer you tomorrow.

Good luck. It does sound like rather a stunt was pulled on you and/or your conveyancer was inefficient.

missbiggles1

A sinking fund is like a savings fund that people pay into to fund major repairs like new roofs or external decoration. Buying a leasehold property with a healthy sinking fund is usually considered a plus point when buying.

davidmcn

lost_in_translation wrote: »

does anyone know anything about 'freeholder sinking funds'? Apparently our HA has one and our contribution is around 50% of our yearly service charge. No one at the HA can tell me wat this fund is for, and from my research such funds tend to be paid into by leaseholders for work on communal parts of their buildings. We maintain our property ourselves

But not the communal parts you've referred to i.e. the paths, grass, street lights etc. Not unreasonable to think there'd be a sinking fund to cover more expensive works.

lost_in_translation_2

missbiggles1 wrote: »

A sinking fund is like a savings fund that people pay into to fund major repairs like new roofs or external decoration. Buying a leasehold property with a healthy sinking fund is usually considered a plus point when buying.

I

I am aware of the purpose and benefits of sinking funds for leaseholders. However, we are freeholders hence me questioning the purpose of such a fund.

lost_in_translation_2

DUTR wrote: »

Not so sure about ripped off, think more so the readers are being spun a line, so early on a Sunday morning, the queiry comes to head and a 1st poster finds the right forum to post into. When you purchased this was completed via a solicitor which you appointed, they are the 1st port of call.

Sorry but I don't understand this post, at all. This has not come to a head 'so early on a sunday morning', I have been making enquiries to the HA with regards to our service charges since October, following our bill with last years actual spends. I have already had them agree some charges were erroneously applied (eg for cleaning of communal areas when there are none) though as yet no word on getting these charges refunded and no explanation of the purpose of the sinking fund - which nearly £2000 a year gets paid into, yet the most recent statement said £0 was bought forward. No major work has been done, so where is the money going? The situation has further been bought to a head by our latest service changes bill which arrived yesterday morning, in which our monthly charge has been increased by almost 300%. No line spinning here. I wish

Also our conveyancers were utterly useless. They wouldn't be my first point of call if you paid me.

marksoton

You're not going to get anywhere without the relevant documentation. That's what you need to acquire.

G_M

How can we answer your questions without access to the information?

If there is a lease - read it!

If there are covenants - read them!

If you don't understand them, ask either your solicitor, or quote them here, in full, and we'll try to explain.

But it is not unusual for there to be an obligation to pay towards communal facilities.

lost_in_translation_2

marksoton wrote: »

You're not going to get anywhere without the relevant documentation. That's what you need to acquire.

Yes, I am aware of this. What I am not sure of is where that information is to be found. Hence why I asked which Land Registry documents I need to be looking at and for what information/terms. That was the point if the first part of my post.

moneyistooshorttomention

In fairness - I think the thought literally doesn't cross many peoples minds.

Back when I was in public sector housing - there were people there that were asking if they could buy what we had (no we couldn't basically). They had no thought about that. If I had had the "between devil and deep blue sea" option of "buy this - or you will never be able to buy anything" (a dilemma I was spared thankfully) then the thought never crossed my mind either.

We've all just got this "pattern" in our heads that goes "I buy a place and then only pay my own bills - obviously". Its parked right next to the one that goes "...and, of course, we will never find neighbours are trying to either nick or use our garden". When all you've ever known is "standard normal" that's how it is in your mind....:cool: