Evil residential management company on new build estate

rachel702

Two years ago my partner and I bought a freehold new build property.

We were vaguely told there would be an annual charge to keep communal/shared areas maintained. Our development is large and houses are still being built and it has only recently come to light that the management company haven't officially taken control from the developers however we are still being charged the annual fee.

The earliest phase of the development was built 8 years ago and people have been paying the whole time. I understand that although we were given little information about the managent company at the time, I know we are stuck with it.

My question is - are they legally allowed to charge us if they haven't taken over control of the communal areas? I cannot seem to find this answer anywhere, but it seems wrong that they can do so.

If anyone can help that would be amazing.

DoaM

Evil? Over-reaction much?

rachel702

Really helpful thanks

leslieknope

have there been issues with the communal areas that nobody has fixed? i.e. developer says it's the management company's problem and vice versa? or have there been no issues and you assume they haven't taken over because they're still building? you're still liable for the service charge you agreed to.

NeilCr

Are you sure the management company aren't working for the developers?

That's what happened in both new builds I bought

rachel702

I have written confirmation from the management company that they haven't taken over any phases of the development.

Yes there has been instances where the management company have said they can't fix a problem because they haven't taken over. It's quite a common theme round here.

It can take over 3 months for a streetlight to be fixed or for a patch of grass to be mowed. If we felt we were paying for an actual service it wouldn't be a problem.

htaylor16

We're buying a freehold but have to pay a service charge. However we don't have to start paying for it until the builders have handed over to the management company, if they're not managing the site what are you paying for?

cashbackproblems

Pretty dumb to sign up to a freehold house then pay service charges. This is why smart people avoid new builds

glasgowdan

So it's the developers who have been mowing the grass and fixing road issues? Have you attended any resident's meetings? What do your invoices from the management company say they are doing?

NeilCr

cashbackproblems wrote: »

Pretty dumb to sign up to a freehold house then pay service charges. This is why smart people avoid new builds

Sorry but no - not always

I've bought new builds and have been - and am - very happy. As are the others on my current estate (and the previous block of flats). In each case we have taken on the freehold and it all works very well

Smart people buy the house they want within their budget - taking into account possible ongoing costs.

Norman_Castle

rachel702 wrote: »

We were vaguely told there would be an annual charge to keep communal/shared areas maintained. Our development is large and houses are still being built and it has only recently come to light that the management company haven't officially taken control from the developers however we are still being charged the annual fee.

Are the communal/shared areas being maintained? If so this work and an admin fee will need to be paid for regardless of who is managing it.