Buying New Build House Freehold - Service Management Fees on Communal Areas

AshersH

Hello everyone,

We are looking to buy a new build house (freehold) and have found you are obliged to pay a service charge for maintaining the communal areas in the development, as explained by the builders. The charges indicated are not massive between £150 and £350 per annum, that do not come into effect until the builders have finished and moved off of site. I have read that the service charge is attached to the freehold title deed, and therefore difficult to contest, so there is little room for managing this going forward. Have heard horror stories where Property Managers have been assigned and the moment the developers have finished and moved off site the service charges double. Secondly, when selling there are admin charges for information packs and legal documentation prepared for transfer sale. I have a couple of questions, which I need to understand, and wondered if there was anyone on the forum that could expand on.

1. Why is this happening, if a council if giving planning consent and collecting council tax, then why are they not adopting the entire development? In essence why should I pay twice? The council are reaping additional council tax income but are essentially allowing for a second tax through the back door?!

2. Is there a way to negotiate out of it being attached to the Title deed. I am of the understanding if ultimately you are not happy and decide not to pay it, there could be a charge on your property, and ultimately you could lose your house. You can't get out of it and have very little control.

3. Is there a way in which these communal areas can be apportioned to the Title deed or each property, in terms of ownership. That is if I am paying a service charge for an area of space, then I need to own a portion of it, have control of who manages and maintains it.

Hope this all makes sense and appreciate the feedback...

Thanks

NeilCr

Similar types of threads

https://forums.moneysavingexpert.com/discussion/5973834/freehold-house-but-service-charge-for-parking-bays

https://forums.moneysavingexpert.com/discussion/comment/75600005#Comment_75600005

with a lot of information in.

Councils are often not keen to take on new estates because of the additional cost. They will still collect your rubbish and provide services in other parts of the local authority area which your council tax goes towards.

As has been said in the other threads you need to read your documentation closely to understand exactly what the service charges relate to, how they are increased etc.

The only way to get control is if the developer will sell/give the freehold of the estate to you as a group of residents

Are there any leasehold properties on the estate? Blocks of flats for example?