Freehold Property and Property Management Company

TURRELL1

Hi Everyone,

First time buyer and could really do with some advice.

I'm in the early stages of purchasing my first property which was a commercial building now converted into two residential homes both of which the property developer/seller own.

The property developer/seller also has built flats on the surrounding/connecting land which use to be the garden, now some of which is a small communal courtyard with flats backing onto it.

In the contract it has been stipulated that I must become a member of the property management company and pay a large percentage of these service charges.

I have consequently discovered the property developer is also a director of this management company.

I was lead to believe this was a "freehold" property but this very much feels like a leasehold arrangement?

At no time was I informed prior to my solicitor receiving the contract nor was it made clear that I would have to to become a member and pay service charges as part of the purchase.

Have I got any grounds to dispute this section of the contract?

Is this set up common practice in these kinds of situations and if it is not illegal is it not morally right that myself as a buy, the other residents be it owner or tenant don't have some right in deciding who looks after the communal area?


Any thoughts or advice would be much appreciated.


Turrell

SmlSave

It's a freehold house but with restrictions on the Title relating to the communal areas. Unfortunately not that unusual now a days and a very clever way of the management company to make money.

Unfortunately while your solicitors would have been able to see a restriction on the Title they wouldn't have been able to advise you on it until the management pack was received which can take weeks if not months.

You have no right to argue or disagree I'm afraid. It comes down to how much you like the property. Enough to pay the service charge? Enough to pay for the management pack when you come to sell in the future?