Service charges on new build house

troffasky

TazTia wrote: »

This is why we pay our council tax!

...

We have a grassed area owned by the council at the end of our front garden but my neighbour and I take turns with cutting it. Certainly no fees involved.

No fees, apart from the ones you pay to the council, that is. The fees they don't seem to be spending on mowing that grassed area. Although from their point of view, it seems to mow itself so I can sort of see why they don't bother sending someone out to mow it!

[Deleted User]

Greyboy wrote: »

We were recently planning to buy a new build. Just before reserving we were told that the estate was private and that we would be liable for service charges and unforeseeable extra repair/cleaning/maintenance/upkeep costs which would normally be paid for by the council or utility companies. This was even though there was no reduction in council tax.
We therefore pulled out, and suggest that everybody contemplating buying a newbuild enquires about extra charges before committing themselves. Looking at the first year's estimated budget for the property management company in charge of our new estate, half of the money paid by residents immediately disappears as a management fee. What remains seems insufficient to meet their costs, and so this charge will undoubtedly escalate. Caveat emptor.

Pulling out was probably the best decision for your financial future you could have made. So many horror stories and regrets.

[Deleted User]

richearle wrote: »

My solicitor is saying..


We confirm that the property is freehold but subject to the payment of an anual service charge to a management company for maintaining the common areas of the estate to comply with the landscaping conditions of the planning permission

The service charge is a reimbursement for the costs actually incurred bythe management company who may subcontract some of the work which does not have to be the cheapest tender

As a member of the management company you will have a little say in these costs at the AGM etc

The estate is at least 15 years old and the charges are about £120 a year. Is this a safe bet to complete this purchase?

Run for the hills. They have even admitted they don't have to be getting the cheapest tender and you only have a ' little' say so read no say. In their defence at least they have been open about how little control you will have and admin costs will form a large part of the costs . Walk away

davidmcn

BBH123 wrote: »

Run for the hills. They have even admitted they don't have to be getting the cheapest tender and you only have a ' little' say so read no say. In their defence at least they have been open about how little control you will have and admin costs will form a large part of the costs . Walk away

You're replying to a post from over seven months ago. I suspect they've already made their decision.

TazTia

No Troffasky - it's the small area at the bottom of our garden and all others, so street remains council owned and those grassed areas have never been looked after by the council, it's an unwritten rule - look after it as the council won't but I'd rather do that than be ripped off by a management company or have it look unkempt. Yes, we ALL pay council tax no matter what!!!!