Buying New Build House - Management Company Worries

RichardCUK

HanPop wrote: »

We currently own a 6 year old house and we pay £10 a month for the grass cutting, it hasn’t gone up in that time and they do actually cut the grass. We are moving to another new build estate with the same set up and to be honest the majority of new houses have this so if you want new then you’ll probably have to accept that.
Saying that it obviously does bother some people as our buyer pulled out actually after we were due to exchange purely because of this in June which was obviously very stressful for us (considering she already knew about the service charge for weeks before). However our estate agent has sold many on our estate so it doesn’t mean you’ll never resell (as we have done).

The maintenance company for development isnt MeadFleet by any chance?

HanPop

No our management company are called Betts Estates.

SallyAnneBooth

https://www.leaseholdknowledge.com/fleecehold-property-trap-returns-to-parliamentary-agenda-with-new-private-members-bill

Interesting read

Fishman68

Please avoid this company, they sprang the deed of C on us the day before contract exchange literally held to ransom it was our biggest regret we didn’t challenge it. Bellways homes issued us scope of landscaping works pre contract to date they have never fulfilled the scope of service promised. They don’t mulch, weed or replace dead planting so don’t expect a high standard.
After 12years of contesting the ever increasing bills and poor upkeep standards it has ruined the property purchase experience and we look forward to never having anything to do with them ever again. We will never buy new build ever again, at least you have a good solictor who has highlighted the one sided contract which gives the power to do as they like and fine you if you withhold payment for their failure to deliver a meaningful service.

SallyAnneBooth

Any update on your decision OP?

pattypan4

I like the concept of a management company looking after the communal areas. I live in a newbuild, one of 10 and 4 have yet to be built. Each property owner will become a director of the management company which will be handed over to us on completion of the last sale. My last property had a management company by share ie share of freehold, we self-managed and it was cheap and very straightforward, fees actually reduced once we had build up a small kitty. The property prior to that one was one of 40 and we clubbed together and bought the freehold and again self-managed


I read the details very carefully and had an independent solicitor. It sounds very much as the company are trying to stitch you up and personally, I would walk

Fishman68

Sounds ideal to me controlling and managing cost and quality of work done, I could only wish we could exit the Meadfleet Deed of covenant and adopt such an approach. Our estate has 22 plots at the beginning there was real appetite to challenge Meadfleet everyone was annoyed with the service and misleading of services we were paying for, but after months and years of resident meetings a few couldn’t be bothered with continued protesting and holding Meadfleet to account and the realisation set in we were trapped in a one sided contract heavily weighted in Meadfleet’s favour. A few of the original purchasers sold up and the collective momentum to push Meadfleet for a better service and more transparency dissolved. Over a decade on, the annual fee has gone from £150 to over £300 and our estate is tiny with very small parcels of common space I would estimate there is about 20sqm of grass requiring cutting and circa 40sqm of hedging, the don’t do weeding, mulching or replanting and the estate now looks in a state of terminal decline which attracts antisocial behaviour. I’m afraid I’ve lost the will power and energy to continue fighting them sadly as you also state we won’t be buying on a new build development in our lifetime again either, you only make this mistake once! It beggars all belief successive governments have don’t nothing to protect the consumer one would wonder why they haven’t (vested interests no doubt)

Mickygg

Another way to look at it is if there was no management charge for upkeep of areas then the area would quickly look shabby and unkept.
My last house was new build and had no management charges but it was concrete jungle. The few green areas never got cut and looked a mess until winter came and killed off the long grass.
I moved away and will never buy new build again for other reasons but if I saw a house with a management company and fees I wouldn’t touch it. Too many uncertainties and you are held to ransom.

OP make sure you are totally comfortable with this if you proceed, otherwise it could eat you up inside and ruin the house for you.

rachel230

davidmcn wrote: »

Does that apply even if "the full facts" are the market norm?

There is no market norm. Sometimes councils adopt estates, sometimes not. Sometimes they adopt part of it - maybe roads and/or drains and/or lighting..or not. Sometimes houses are "freehold" but actually you are charged maintenance for leasehold garage. Sometimes a management company is embedded in the deeds (which you may not find out about until.the eleventh hour. This means you can never get rid of them. So - not sure what you mean by "market norm".
The point is if you are not fully informed with all facts open and transparent then you are entitled to get any deposit returned in full and costs reimbursed if had you known these materal facts at the time, you would not have gone ahead with the purchase..