Service Fee increased in Manchester

Zhuan

Hi, I am looking at a place in Axis Tower in Manchester. It’s charging 4+ pound per square feet on service fee. Does this seems high to you guys? That’s over 2700pound/ year. Seems high but I am not sure what the fees are around M1. Would really appreciate some insight. The last thing I want is problem reselling.

Zhuan

It’s a one bed room.

RelievedSheff

What is included for the service fee?

SallyDucati

I think the service fees for apartments in the city centre with concierges, gyms etc are asking about that much.

But IMHO those Axis apartments are all show - look v small for the cost. There are so many going up around Manchester at the moment I don't think they can all sustain that price point long term.

Zhuan

Service charge mainly goes to cover insurance fee, staffing , concierge service etc.

Zhuan

The one I was quoted was a one bed room 59 sqm and with a service charge of 4+pound per square feet. Are apartments around there all asking similar service charges?

ethank

I've just done a search and one site says

"Axis Tower is expected to be complete in Q4 2019 and will have 173 Luxury apartments, made up of a range of 1, 2 and 3 bedroom choices with a variety of en-suite and family bathroom configurations, all with co-ordinated ambience depicting a modern lifestyle. Open plan galley kitchen/ living room and en-suite bedrooms.

Tenure
The apartments will be leasehold, with a 125 year lease.
There will be a service charge of approximately £2.70 per sq ft per annum
Ground rent is payable annually in advance for each apartment. (£275/1 Bed; £350/2 Bed; £425/3 Bed)"

See https://www.stevensonwhyte.co.uk/property-for-sale-axis-tower-albion-street-manchester-pi-stew315.htm

Agree - the properties seem awful small!

One Bed



Two bed

GDB2222

Find a flat that doesn’t have a concierge?

daveyjp

The service charge reflects the services being offered. 24/7 concierge isn't cheap. Could be as much as 100k per year.

AlexMac

I'd find £2.7k very steep for a 1-bedder, but I'm comparing it with the Service charges on a few "shared freehold" flats we've owned, where we kept costs low by managing ourselves;
- 1 bedder; £420p.a,
- 2 bedder £1/3k p.a. including roads and landscaping;
- 3-bedder £1.1k p.a.

- all of which included a hefty contribution to a sinking fund for maintenance- especially the 3-bed flat in an exposed seaside location requiring frequent external decor. Does yours include that, or is it mostly just annual expenses and fat management agency fees?

Even the two little 2-bedroom Council leaseholds BTLs we own are good value- £600-£700 p.a. including all the usuals; insurance, communal lighting, caretaking (but not concierge nor lifts, and certainly not a gym or lavish landscaping...). OK, we get £4-5k bills every 10 years for major works, so call it about a grand a year each on average.

But everything is relative; we had mates who eventually sold their posh riverside two-bedroom flat because the Service charge was an eye-watering £5-6k p.a. albeit for the full monte; gym, concierge, gated block, secure parking...

I'd be thinking how much more mortgage I could buy for £2.7k p.a., as that's more than the money I pay annually for my £140k interest-only home loan from the Nationwide!

wine_night

The service charges do look high- we have a one bed BTL in M15 (not a million miles from Axis) and the charges are just over £1000 p/a.

Have you spoken to any Manchester estate agents about the city centre property market at the moment? The cladding issues and new tall buildings regulations are restricting the market. We're looking at selling a property in Leeds city centre this year and the market is stifled until the tower blocks have produced safety certifications that will satisfy mortgage lenders. Not looking to sell our Manchester property at the moment but I understand that Manchester is just as badly affected, if not worse.

In all honesty if you are worried about resale I would not buy a new-build city centre flat at all at the moment. Putting aside the cladding problems there's the potential of onerous doubling ground rent clauses (check the lease carefully) and little or no control over escalation services charges unless you have a share of freehold.

If you still want to buy a city centre flat then have a chat to a few estate agents and have a look at some comparables. There may be some bargains out there if you're a cash buyer and are willing to take a risk on the cladding issues getting resolved.