leasehold house service charges

emma.cook3

Hello, can anyone help or tell me a place I can get advice please? I want to buy a house which is on a new development and leasehold. The lease is fine, good amount of time and fair price, it stipulates in the contract that it cant be put up more than x every y years. But the service charge is managed by a national company. Its expensive already considering its a small row of houses with a small shared carpark and fenced area for bins. But there doesnt seem to be anything in the contact about how much they are allowed to put it up by and if they are allowed to ask for one off lump sums in addition. I really love the house but dont want to be paying thousands to a company who dont really do a lot. Do people have any rights? Should the max price increases be in a contact? Can I refuse to pay if the charges increase. They are building a couple of blocks of flats on the same plot so I am worried they will charge the house owners for the flats areas too.

-taff

They can put it up by whatever like, it does't have to be resonable, you could refuse but if you don't pay it, they'll either take you to court or put a charge on your house.
Find another house.

Davesnave

The person who should advise you is your solicitor.... and that's not the one recommended to you by the company building the houses!

-taff

https://forums.moneysavingexpert.com/discussion/5585894

emma.cook3

Is it usual to not have a legal contract for service charges?

emma.cook3

Davesnave wrote: »

The person who should advise you is your solicitor.... and that's not the one recommended to you by the company building the houses!

I dont really want to spend a lot of money on a solicitor unless i am sure i want to buy. Thats why i am trying to find out in advance

emma.cook3

-taff wrote: »

https://forums.moneysavingexpert.com/discussion/5585894

Isnt this about leasehold rather than service charges? I couldnt find the relevant bit.

Chanes

I am wary of leases and service charges, but, given the gut instinct you have with regard to the service charge, I would tread extremely carefully. I do not know if there are laws that govern service charges in such a way they must be deemed reasonable or rational, but in the absence of a law or contract to prevent them being abused, I would walk away. Don't ignore your internal alarm bells, it's an expensive business without complications to it, be sure.

cazs

emma.cook3 wrote: »

Hello, can anyone help or tell me a place I can get advice please? I want to buy a house which is on a new development and leasehold. The lease is fine, good amount of time and fair price, it stipulates in the contract that it cant be put up more than x every y years. But the service charge is managed by a national company. Its expensive already considering its a small row of houses with a small shared carpark and fenced area for bins. But there doesnt seem to be anything in the contact about how much they are allowed to put it up by and if they are allowed to ask for one off lump sums in addition. I really love the house but dont want to be paying thousands to a company who dont really do a lot. Do people have any rights? Should the max price increases be in a contact? Can I refuse to pay if the charges increase. They are building a couple of blocks of flats on the same plot so I am worried they will charge the house owners for the flats areas too.

I don't think you can oppose an increase. My service charge is £732 / 6months. It was £663 per 6 months in 2011. So gone up by about 10% in 5 years. I don't like paying it but for it I get a reception service which takes in packages, buildings insurance and water, bin collections and of course any building maintenance. So I don't feel too hard done by.

I wonder if you can look at that company and find out their history of price rises, or otherwise, of other properties/buildings where they manage the service charge.

Iguana

Buy a freehold property.

jbainbridge

Of course you have rights ... you have the right to not buy the property. Walk away and find something more sensible.