Purchasing a New Build

HayleyB26

We are currently in the process of looking to purchase a new build property.

The development we are looking at will incur a service/maintenance charge and is also subject to restrictive covenants. What is the possibility of removing the covenants? as many of the details are extremely restricting. It almost feels like its not our property at all. Are covenants a part of all new build developments? What is the purpose of them?


When it refers to the transferor within the covenants as detailed by the developer, does this refer to the management company?


What is a Fleecehold property? Is this a Scam?

Also, from my understanding, we have to pay a fee in order to alter anything to our property, which suggests that we are being sold a leasehold property that is dressed up as a free hold one!



I understand many people would suggest to avoid this, however we have fell in love with this property and area, so can anyone suggest anything to deal with the issues?

[img][/img]https://i.ibb.co/ZKDc3yw/51112748-528251674362528-295430094254505984-n.jpg%5B[/img]


[img][/img]https://i.ibb.co/T1Czrsw/50924291-1174221309412756-5205194801598693376-n.jpg%5B[/img]


[img][/img]https://i.ibb.co/6NM7Q9P/50583764-345920605996833-4113183050009935872-n.jpg

middleclassbutpoor

You need to be mindful that both these things are common with new builds...

HayleyB26 wrote: »

We are currently in the process of looking to purchase a new build property.

The development we are looking at will incur a service/maintenance charge

Which is likely to increase once the developer has long gone so beware...

and is also subject to restrictive covenants. What is the possibility of removing the covenants? as many of the details are extremely restricting. It almost feels like its not our property at all.

Slim to none. These could have been part of planning permission, they could be for the benefit of others too

Also, from my understanding, we have to pay a fee in order to alter anything to our property, which suggests that we are being sold a leasehold property that is dressed up as a free hold one!

If it was leasehold then you would pay ground rent on top of maintanence charges

When it refers to the transferor within the covenants as detailed by the developer, does this refer to the management company?

cjv

Do you have a solicitor? It would be best to direct all your questions and concerns to them, as they can see all the documentation and will be looking after your interests, assuming you are not using the sellers recommended solicitor.

HayleyB26

cjv wrote: »

Do you have a solicitor? It would be best to direct all your questions and concerns to them, as they can see all the documentation and will be looking after your interests, assuming you are not using the sellers recommended solicitor.

We don't have a solicitor as of yet, due to the property being nowhere near completion. Are we best to assign one as soon as, to ask any questions?

G_M

First, if the developer recommens a solicitor, run a mile. Find/choose your own.


Second, don't instruct them to do anything till you've made up your mind. They are not likley to be able to get all the documents to review until you've commited yourself anyway.

Unicorn_cottage

"I understand many people would suggest to avoid this, however we have fell in love with this property and area, so can anyone suggest anything to deal with the issues?"

You are in love with this property but you have already posted 2 threads asking questions which are obviously causing you concern. You need to speak to a solicitor to get the facts and make a rational decision based on your findings. There are many many issues with new build estates and I posted on your other thread a link to a group which is campaigning for changes to the current funding model and other issues. Please read this and make yourself aware of the the issues you WILL encounter.

HayleyB26

Unicorn_cottage wrote: »

"I understand many people would suggest to avoid this, however we have fell in love with this property and area, so can anyone suggest anything to deal with the issues?"

You are in love with this property but you have already posted 2 threads asking questions which are obviously causing you concern. You need to speak to a solicitor to get the facts and make a rational decision based on your findings. There are many many issues with new build estates and I posted on your other thread a link to a group which is campaigning for changes to the current funding model and other issues. Please read this and make yourself aware of the the issues you WILL encounter.

Yes you're right, I just don't want to miss anything out and be caught short. Are we best to assign a solicitor now even though the property is nowhere near completion?

Unicorn_cottage

Only if you have made an offer - if not I would run a mile! Can you look at other properties which are not new build and will mean you do not have to encounter many of these issues and don't have to pay bought management and council tax charges. Look up the HorNet website/fb group and they will be able to answer any questions.

chanz4

The builders don't tend to care what you do once you buy, as long as not daft alterations as they like them to look the same while selling

Slithery

chanz4 wrote: »

The builders don't tend to care what you do once [STRIKE]you buy, as long as not daft alterations as they like them to look the same while selling[/STRIKE] they've sold all of the properties on the development.

FTFY xxxxxx

middleclassbutpoor

Just remember that if you are in breach of any covenant when you come to sell, you could have issues.