New builds - maintenance fees

DJLDomino

Just wondered if there is anyone on here who has purchased a new build as a freeholder and is paying a maintenance fee/service charge.

What have your experiences been? My wife and I have found a place but we're put off by everything we've read about what some are claiming to be the next big PPI scandal. Obviously, the internet is filled with horror stories, so I'm wondering if some of you have had good experiences/no problems with it.

Axel132132_2

Not had any experience, but I am also buying one with a maintenance fee. So good question!

DJLDomino

Out of interest, how much is the fee? Do you know exactly what it's covering?

Farmerbob

Is the issue not new build leasehold houses with unscrupulous raises in costs over time? I’m buying a new build freehold and will pay £10/15 a month for maintenance of the grounds etc. The internet is full of horror stories just make sure your not mixing up freehold vs leasehold as its the latter that’s been hitting the news recently.

axel132132

Google 'Fleesehold'

Its freehold house with ground rent, once houses are built. Building firm sells maintenance on who shoots price up 2 3 x

andyf1980

We have some experience of this as we bought a new build on a development with three different builders but one managing company. As yet the managing company have not agreed to take on the maintenance so the builders are (or aren't!) doing any maintenance.

It has so far been a bit of a pain in the !!!! because it's very difficult to get anything done. The people who have paid have seen a small increase in year 2 but nothing major. You can also sack the managing company and either appoint another one or do it yourself. Our development has 700 houses so would probably be another hopefully better company.

The worst thing really is that if you don't pay (even if you dispute) the company can place a restriction on the property which means you can't sell it until repaid.

Farmerbob

I’d be ensuring the solicitor looks over everything with a fine tooth comb. I guess the issue is more related to the company doing the maintenance rather than writing off all houses where there’s a maintenance fee. My estate is managed by the local housing association so I’d hope they would be of a better standing than some of the more cavalier outfits about.

DJLDomino

My issue is with selling the property. The fee being quoted is £130, which I would be fine with. However, I worry that with constant increases this makes our property less desirable if/when we want to move on.

There are stories in the papers of some who have seen their maintenance fees double year on year. I ask myself what buyer would take on such a fee for a second hand home?

RelievedSheff

I think we have been lucky with our recent new build purchase. It is freehold and there are no management fees.

The green spaces are looked after (very well I may add) by the local council.

We were expecting to find there was a management fee so it was a nice surprise when we found out there wasn't.

daveyjp

The area is currently completely unregulated.

If you have a lease with a service charge there are formal dispute procedures.

With charges on freeholds there aren't so you need to see the service charge contract and have a (preferably landlord and tenant specialist) lawyer look over it.

Andyf1980 states above the possibility of a restriction being placed on the title should there be a formal dispute. To me this is draconian - if you don't agree with the charges they will stop you selling the house until you do.

NeilCr

I've got a freehold house on a newish estate.

We, the owners, own the freehold of the estate and appoint the Managing Agent ourselves. There are a group of resident directors (I am one) and we make the decisions about what happens on the estate - taking advice from our MA. One of our stated objectives is to keep the service charges as low as possible. Any owner can become a director.

Personally, I'd only buy a freehold house on an estate where there is or is going to be such a regime.