Freehold House but Service Charge for Parking Bays

SallyAnneBooth

Hello,

To update you all we will be exchanging this week.

The Service Charge wasn't difficult to predict as it only consists of the yearly electricity to operate the gate + maintenance of the gate + maintenance of the parking area (sinking fund for now).

The electricity to run the gate is very cheap, approx a total of £40 a year if it is opened on average 20 times a day, everyday for a year. Maintenance of the gate is £400 a year. So the total is £440 split between 12 houses. The Vendor has agreed to fix this at 2% increases for 99 years. No other fees or costs are payable or can be introduced even in the event of the Management Company changing hands.

Sally-Anne

NeilCr

What happens if the gates break completely and need replacing?

Or additional safety rules are introduced? We fell foul of this one and had to "upgrade" our gates.

I assume that the vendor is going to fix the 2% for everyone?

You've done well financially wise but I can foresee issues going forward. There is no way we as a ManCo would agree to that.

SallyAnneBooth

Hi NeilCr,

The gates can always be left open until sufficient funds are accumulated to replace the gates.

The 2% is only fixed for us as the rest of the properties were sold a while ago.

Sally-Anne

NeilCr

SallyAnneBooth wrote: »

Hi NeilCr,

The gates can always be left open until sufficient funds are accumulated to replace the gates.

The 2% is only fixed for us as the rest of the properties were sold a while ago.

Sally-Anne

Which can effect residents car insurance.

I've got to say that, if I was one of your neighbours, I'd be singularly unimpressed. I wonder if the builder will now (try to) sell the freehold.

Sachs

Well fair play, Sally-Anne, I did not think the freeholder could possibly be foolish enough!

Just be aware that your neighbours titles almost certainly say 'pay a fair and reasonable' proportion of the service charge and your freeholder has almost certainly just invalidated those contracts. Ultimately it will presumably be his problem and I have no idea how it would play out legally but if I were you I would stay very quiet about your arrangement!

mkgirlchick

fleecehold im afraid. a house sold as freehold but it is not and has clauses like this. its a investments dream.


please take time to look & sign also Facebook search NLC you can join the group and get any help you need...


https://petition.parliament.uk/petitions/238071

Alan2020

If I am not mistaken the OP is the freeholder/joint freeholder. It’s just a management company. I think if you don’t make any profits they will just shut the company down. The road and gate will fall into disrepair and the OP will have a hard time selling at market value.

I viewed a property like this, house was fine but the communal area was a bombsite, completely in maintained. Didn’t buy it, it was well under market value, later sold to a btl landlord