Leasehold/Freehold Services Charges?

supersaver2

Morning All,

I moved in to a new build house just over 2 years ago. The house was bought as a leasehold and I'm in the process of buying the lease. I currently pay £150.00 for the lease every year and services charges every 6 months for around £150.00.

Chatting to one of the neighbours over the weekend and he had the lease throw in with the purchase so he is freehold. He said he has never paid any service charges since moving in 2 years ago.

So now I'm a little confused. I understand not paying ground rent when you are freehold but he's not paying the service charge which pays for our shared area, we have a green in front of the house and other areas that are maintained by a management company.

Upon looking at the service charge invoice it does mention the costs going to the landlord for upkeep of the shared areas. More of the neighbours are looking at buying their leases.

So I'm left wondering who will pay for the shared areas to be maintained as less and less houses are leasehold?

Also seems unfair not to pay the services charge yet benefit from the maintained areas.

I will ask my solicitor but wondered if anybody could shed some light?

Many thanks,

G_M

supersaver2 wrote: »

Morning All,

I moved in to a new build house just over 2 years ago. The house was bought as a leasehold and I'm in the process of buying the [STRIKE]lease[/STRIKE].
Freehold? (you've already bought the lease!)

I currently pay £150.00 for the[STRIKE] lease[/STRIKE]ground rent? every year and services charges every 6 months for around £150.00.

Chatting to one of the neighbours over the weekend and he had the [STRIKE]lease[/STRIKE]freehold thrown in with the purchase so he is freehold. He said he has never paid any service charges since moving in 2 years ago.

So now I'm a little confused. I understand not paying ground rent when you are freehold but he's not paying the service charge which pays for our shared area, we have a green in front of the house and other areas that are maintained by a management company.
Chances are either
* his title was poorly drawn up and ommitted the charge for maintenance of communal areas, or
* the management company has seen he owns the freehold, made an error, and not invoiced him

Upon looking at the service charge invoice it does mention the costs going to the landlord for upkeep of the shared areas. More of the neighbours are looking at buying their [STRIKE]leases[/STRIKE]freeholds.

So I'm left wondering who will pay for the shared areas to be maintained as less and less houses are leasehold?
Good question. Get out your Title docs.

and pay £3 to the Land Registry here and buy/read your neighbour's Title - see if it contains a reference to this fee.

Also seems unfair not to pay the services charge yet benefit from the maintained areas.
Sometimes (just sometimes) life is unfair.....

Make sure you understand what you are buying.....!

moneyistooshorttomention

G_M wrote: »

Make sure you understand what you are buying.....!

My understanding of the law (correct me if I'm wrong on this) is that someone can tell you until they are blue in the face that there is a "service charge for communal areas" BUT that is only actually true if it's down there in writing in the title Deeds/Register entry for the property concerned.

If it's not down there in writing - then there is no such charge - even if there is iyswim.

It has to be there in writing or it doesn't exist (even if it does...).

So - there is a chance your freehold neighbour is due to pay it BUT it's not down in writing in their paperwork and that means they DON'T have to pay it iyswim.

janninew

I may be able to help but I imagine all situations are different.

I bought a new build under similar terms and had to pay the dreaded service charge. When I bought the freehold the service charge invoices stopped so I've not paid anything since to maintain the shared areas since buying the freehold.

You are correct, it seems unfair that other residents pay for the estate maintenance shared area upkeep yet the freeholders do not. No idea what happens if all homes or very few are only leasehold, are they then hit with ever increasing bills to keep the estate maintained?