Service charges on new build house

glasgowdan

davidmcn wrote: »

Do those houses actually have any rights over the areas in question? And who is paying for the grass-cutting?

Exactly, To say "nobody pays" is pretty oblivious. Do the gardeners do it out of the goodness of their hearts?

Lord_Baltimore

davidmcn wrote: »

Do those houses actually have any rights over the areas in question? And who is paying for the grass-cutting?

Yes, completely unfettered access afaik. I don't know who pays for the grass-cutting which is why I suggested earlier that perhaps it's some kind of pre-adoption arrangement. Either it is the Council or a private company under the charge of the developer/Council? I don't know and no-one living at that estate is asking!

I do realise that there are jobs that need to be done but why should freeholders pay a progressively increasing management fee to private companies who might not necessarily provide the most competitively-priced services?

moneyistooshorttomention

Lord_Baltimore wrote: »

Yes, completely unfettered access afaik. I don't know who pays for the grass-cutting which is why I suggested earlier that perhaps it's some kind of pre-adoption arrangement. Either it is the Council or a private company under the charge of the developer/Council? I don't know and no-one living at that estate is asking!

I do realise that there are jobs that need to be done but why should freeholders pay a progressively increasing management fee to private companies who might not necessarily provide the most competitively-priced services?

I'm not surprised no-one is asking on this estate. One doesnt even think of asking - as, obviously, Councils deal with grass areas etc. That is going to be the automatic presumption - unless one is told (in advance of agreeing to buy the house) that actually its one of these "Council farming their responsibilities off - onto a private management company" type arrangements. I wouldnt have thought such arrangements were commonplace?? I admit the only place I've ever even heard of them is on this sub-forum - where it was a surprise to me to find there is such a thing going on.

So having read on this forum that this sort of thing exists - I would now ask (in advance of agreeing to buy) if I were contemplating buying a new-build house - in order to make sure I avoided buying a house caught up in this. But most people wont read this forum and therefore most people will make exactly the same assumption about it being down to the Council to deal with.

glasgowdan

People aren't duped by some outrageous council scam when buying a new build! Estate charges should come up as part of the buying process.

ruperts

comeandgo wrote: »

But the areas that the maintenance companies charge for are not "public areas". They are owned by the houses or the developers. Why would the council cut or maintain private areas?

Correct in terms of how the scam operates and is justified. Like I said, the authorities are complicit in the scam so it's no surprise to find that the rules are on their side. When you make the rules it's easy to ensure they're on your side.

Clearly though most people would consider things like small patches of grass by the road, not belonging to any specific house, in a non-gated community to which anybody can access to be a public area, and that's how they've been considered historically.

Grass cutting is the least of it really. I believe in many such developments the roads are also deemed private. When the roads need replacing that'll be a huge service charge bill. But you'll still have to pay your taxes. There will be no discounts because you've already paid through service charges. You'll just have to pay twice. A scam.

getmore4less

Without a full list of everything the service charge covers and how it is shared walk away.

Also make sure that the shares owed by any unbuilt properties remain with the developers and has contingency for them going bust.

Better still no service charges till the project is complete.

moneyistooshorttomention

getmore4less wrote: »

Without a full list of everything the service charge covers and how it is shared walk away.

Also make sure that the shares owed by any unbuilt properties remain with the developers and has contingency for them going bust.

Better still no service charges till the project is complete.

Agreed:T

It seems an even odder idea than service charges do in the first place to find that that share of the charges due to be paid by as-yet-unbuilt-houses would get divided up between those houses already there - ie on top of their own share of the service charge.

If there are 100 houses being built, for instance, and 80 of them have already been built and it seems there is a delay going on about the other 20 being built - then the developer is the one due to cover the service charges (one way or another) that cant yet be paid by the 20-future-houses-to-be. Certainly not having that missing 20% share covered by the houses that are already there!

[Deleted User]

When I was a kid we lived on an estate and the communal areas were all cut and looked after by the residents.

When my dad mowed the lawn he then went to the front and side of the house to mow the communal areas, same with the neighbours, they looked after the bits of space near them.

How times have changed

kirtondm

I specifically didn't buy a 5 year old house because of this had it sown up in the deeds.


Unspecified service charge to be paid to specified management company
couldn't sell the house without permission of the said management company
No rights to change management company as company specified in deeds?


Told the current charge was approx. £200 a year but what would it be in 10 years?


This was a freehold house

Lord_Baltimore

glasgowdan wrote: »

Sounds to me like the site is still under the builders control, not handed over to management co yet as it's not finished.

With respect, your posts are presumptive and wrong.

Read the other contributions in this thread. There are completed new build estates where the freehold residents do not pay management fees (they pay Council tax of course pre and post adoption).

Personally speaking, I do not believe anyone, unadopted freehold or leasehold, should be tied to a specific management company because this removes competitiveness and, therefore, makes sitting ducks of hapless home owners. Developers even sell these management rights to private companies as an ongoing business concern. It is currently not illegal to do so (which is why it presumably gets past purchasing solicitors and blindsides buyers) but it is a, seemingly unmetered, con imho.

If I were affected I'd be writing to my MP.

ruperts wrote: »

I believe in many such developments the roads are also deemed private. When the roads need replacing that'll be a huge service charge bill. But you'll still have to pay your taxes. There will be no discounts because you've already paid through service charges. You'll just have to pay twice. A scam.

Which also raises another question especially for those trapped into this management fee swindle: if the roads are unadopted and private, isn't each property owner responsible for and owns up to the centre of the section of road fronting their property? If yes, do they have the right to stop people parking on "their" property?