New builds is this a new thing...

Chanes

As a fan of new build houses (even though we bought one that was 26 years old) when we were looking a couple of years ago it seemed straight forward in that they were offered freehold with no strings. I read more and more new builds being sold as leasehold (250yrs) with £200 - £300 ground rent plus annual service charges and even estate fees (if the council refuse to adopt the roads) If is this cynical of me to think you might as well be renting if you buy new with those terms? And looking into the future will it become the norm?

If we sold again I would seriously consider a new build with freehold as a first option but with all the conditions lumped onto a new build leasehold, maybe not at all.

chelseablue

It does seem to be more common


A colleague of mine owns a house built in 2009, it is freehold but the council wont adopt the road so she has to pay a monthly maintenance fee


Would I buy a leasehold house? No

davidmcn

Bear in mind that if there are communal areas needing maintained, you'll be paying for those whether your house is freehold or leasehold.

Chanes

I am averse to leasehold property unless I loved the house and it still had hundreds of years on the lease (and I could buy the freehold) We did view a Barratt house which was leasehold (£250pa) with a service charge for parking areas(!) We enquired about buying the freehold and the rep. said it would cost around 15k!

Richard_Webster

Builders do what they can get away with. They charge a lot more for a new house than a similar one nearby, which is, say, 5 years old, yet people still pay it.

So if they can sell leasehold they can make some more money down the track whenthey sell the freehold.

While buyers are prepared to pay over the odds and accept these conditions, they will carry on doing it. So we need a buyers' revolt against some of these excesses.

marlot

Richard_Webster wrote: »

Builders do what they can get away with. They charge a lot more for a new house than a similar one nearby, which is, say, 5 years old, yet people still pay it.

Yes, there's a premium, but the buyer gets new bathrooms and kitchen. Possibly also some say on fixtures and fittings, plus a 2-year warranty. Possibly also part exchange. Possibly more choice of style/plot. All in all, not necessarily a bad deal. I've bought new and used; both times when I've been relocating long distance, new is easier - buying used would have meant staying up in hotels, searching, houses falling through etc.

Chanes

marlot wrote: »

Yes, there's a premium, but the buyer gets new bathrooms and kitchen. Possibly also some say on fixtures and fittings, plus a 2-year warranty. Possibly also part exchange. Possibly more choice of style/plot. All in all, not necessarily a bad deal. I've bought new and used; both times when I've been relocating long distance, new is easier - buying used would have meant staying up in hotels, searching, houses falling through etc.

I know, if there was one suitable when we were buying I would have paid the premium for a new build. BUT. with all the restrictions on them now from leaseholds to estate fees, I doubt I would be tempted the same way.

PasturesNew

Mine's freehold. No management/no fees whatsoever.

You're more likely to find freehold in a small builders' development. The bigger boys just all do the management team route nowadays as it's easier for them.

With mine, each house owns a specific bit of the land, with others having the right to pass/repass over it - and the "owner" having the obligation to maintain their bit.

To get to mine/parking, I have to pass over the parts belonging to 3-4 others.

glasgowdan

I just wouldn't entertain paying ground rent, factor fees and so on for my home. I also wouldn't entertain buying a new build of any kind as I know how many problems can arise. Give me a lived-in family home any time. If work needs done it's budgeted for when the offer is made.

We're doing up a 1950's bungalow that's had the same family in it since new. Should be moving in 4 weeks and loving every second of it. We'd never get such a good plot of land, location, style, build quality or feel from a new build house in our budget.

I maintain gardens of communal new estates and I know some of the bills the residents are paying. The thing is they'll ALWAYS be paying these bills and the bills are only going to change in one direction.

pinkshoes

My parents live in a newbuild house.

The development has a "main" road running through it, then off the road are closes with 3 or 4 houses. Each house gets a double parking space and double garage, then one of the houses owns the freehold over the rest of the close, and is responsible for making sure it is maintained, with the cost split between the houses equally.

BJV

We have just bought two commercial proprieties. The first was lease hold but for 999 years. I know as my solicitor told me it is just the same as freehold. I will not be here is 999 years equally i will not be here in 250 years but I just did not like the feeling that I had a landlord even if it was only in name only. I could not wait to complete on the second which because of an age old covenant was the lease holder of the first. So woo now both freehold.

As one post said builders will get away with what they can. I can sort of understand the charge in that if the council does not adopt the road who will pay for its maintenance etc. But other than that I can not see any benefit. In fact I honestly don't think I would buy a leasehold flat and know that some mortgage companies can get a bit funny towards the end of the lease.